This Year Zach Was Injured in an Auto Accident

question 113

Multiple Choice

This year Zach was injured in an auto accident. As a result, he received the following payments. Zach received $18,000 of disability pay. Zach has disability insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $4,300 in disability premiums for Zach this year.
Zach's hospital bills totaled $4,500 and were paid by his health insurance. Zach has health insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $6,250 in health insurance premiums for Zach this year.
What amount must Zach include in his gross income?

• A) $22,500
• B) $18,000
• C) $4,500
• D) $10,550
• E) Zero - None of these benefits is included in gross income.

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