Julia suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life.She is certified by a licensed health care practitioner as being a "chronically ill individual." Her hospital expenses amount to $350 per day.She will receive $340 per day from a $500,000 life insurance policy as an accelerated death benefit.In 2017,she was in the hospital for 10 days and received $3,400.How much of this amount is taxable?

Question

Quizplus · Accepted Answer

A)Because she is a chronically ill individual,Julia may exclude the full amount she receives as it is less than the amount of actual expenses and the daily limitation of $360 established by law.

Julia Suffered a Severe Stroke and Has Been Admitted to a Private