What is the difference between a megabit and a megabyte? The answer is obvious to computer people â itâs âa factor of eight,â since there are eight bits in a single byte. But thereâs a lot more to the answer, too, involving how data moves, is stored, and the history of computing.
Life insurance is one of the few (and decreasing) ways to receive money without taxation. Congress routinely threatens to tax life insurance benefits in its ever-increasing search for more revenue but the political backlash has proven to be too strong as a result of the huge tax benefits associated with life insurance.
1 Generally, if you receive the proceeds under a life insurance contract as a beneficiary due to the death of the insured person, the benefits are not includable in gross income and do not have to be reported.  Any interest you receive is taxable and you should report it just like any other interest received.