the book is misleading. "accident and health insurance proceeds" in that list actually means "accident and health insurance benefits provided by your employer". Totally different from the proceeds from her own auto-insurance.
anyway, the end result may be that she would not need to pay tax on the insurance payment. so it doesn't matter in this case. I just don't agree with you that what you said is the rule that will govern every time. I know the principle of gross income, and it is more complicated than you said above.
anyway, the end result may be that she would not need to pay tax on the insurance payment. so it doesn't matter in this case. I just don't agree with you that what you said is the rule that will govern every time. I know the principle of gross income, and it is more complicated than you said above.
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