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


### Answer
The term **premiums paid** is defined in *26 U.S.C. § 101* as follows -

> the premiums paid under the contract less any amounts (other than amounts includible in gross income) to which section 72(e) applies

#### Citation:
  - *26 U.S.C. § 101*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

