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Michele Said:

Federal Income tax question - Life insurance?

We Answered:

This board is not for homework.

But, since this is a trick question, I'll give you a way to give a foolproof answer to your instructor.

Go to the web, search on irs and either viatical or life settlements. The IRS issued revenue rulings earlier this year. Quote the revenue ruling when you give your instructor the answer. The tax rate will depend on whether "mom" died or if you "sold" the policy to someone else before "mom" died. Your instructor may not know this makes a difference!

Leroy Said:

I have a term life insurance and a disability policy. I pay the premiums on both. Any tax benefits from this?

We Answered:

Neither policies are tax deductible. Only health insurance and non-reimbursed medical expenses are tax deductible.