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 $280 per day.She will receive $270 per day from a $500,000 life insurance policy as an accelerated death benefit.In 2013,she was in the hospital for 10 days and received $2,700.How much of this amount is taxable?

Question

Quizplus · Accepted Answer

The accelerated death benefit received by Julia is not taxable as per IRS regulations on such benefits for chronically ill individuals. Therefore, the entire $2,700 received by Julia is not taxable. Option A is the correct answer.

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