6
QuizMultiple Choice

Employment Considerations — Test

Question 6 • Advanced Financial Algebra

Which type of income is tax-exempt?

Answer
A
rental income
B
interest from a certificate of deposit
C
salary from part-time work
D
proceeds from life insurance

Explanation

Life insurance death benefits paid to a beneficiary are generally not included in taxable income. Salary, rental income, and interest from a certificate of deposit are generally taxable, so proceeds from life insurance are the tax-exempt choice.

AI-written and checked against the verified answer.

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