### Question
How is the term premiums paid defined?


### Answer
The term **premiums paid** is defined in *26 U.S.C. § 7702* as the following:

> the premiums paid under the contract less amounts (other than amounts includible in gross income) to which section 72(e) applies and less any excess premiums with respect to which there is a distribution described in subparagraph (B) or (E) of paragraph (7) and any other amounts received with respect to the contract which are specified in regulations

#### Citation:
  - *26 U.S.C. § 7702*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

