The Categories Images Plugin allow you to add image with category or taxonomy.
Exactly what I needed this plugin to do. I only give it 4 stars instead of 5 because I hoped it would support "multiple" images per category record, but it only supports 1 image per category record.
Only thing I don't like is that it uses absolute URLs. If it used root-relative URLs The image links wouldn't break between our staging and live servers. They can be fixed though, you just need to tab into the form field instead of click on it, then remove the domain.
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