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27. Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband i
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Answer 27) Option B ($2500)

Publication 525, Taxable and Nontaxable Income.

  • Life insurance proceeds received  as a beneficiary upon death of the insured person, are not included in gross income and are not required to be reported.
  • However, any interest received is taxable and should be report as interest received.
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