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1.003 -Exemption of Interest on Life Insurance Policy and Annuity Cash Value

Item	Description	FY2009	FY2010	FY2011
1.003	Exemption of Interest on Life Insurance Policy and Annuity Cash Value Interest, which is credited annually on the cash value of a life insurance policy or annuity contract, is not included in the income of the policyholder or annuitant. Only when a life insurance policy is surrendered before death or when annuity payments commence does the interest become subject to tax. (Interest on dividends left on deposit is taxable.) Origin: IRC S. 101 Estimate: $235.7	224.3	230	235.7

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.