Anna can exclude the full $15,000 life insurance payout from her gross income, as life insurance proceeds are notconsidered taxable income for the beneficiary.
Yes, Anna can exclude the entire amount of $15,000 received from life insurance upon the death of her grandmother from her gross income. Life insurance proceeds paid to beneficiaries upon the death of the insured are not taxable income for the beneficiary and can be excluded from the beneficiary's gross income. Therefore, Anna does not need to report the $15,000 she received as taxable income on her tax return.