Sam was unemployed for the first two months of 2015.During that time,he received $4,000 of state unemployment benefits.He worked for the next six months and earned $14,000.In September,he was injured on the job and collected $5,000 of workers' compensation benefits.Sam's Federal gross income from the above is $18,000 ($4,000 + $14,000).

Question

Quizplus · Accepted Answer

Sam's federal gross income for the year 2015 is $18,000, which includes both the unemployment benefits and the earned income from working for six months. The workers' compensation benefits are not taxable at the federal level, so they do not affect Sam's federal gross income.

Sam Was Unemployed for the First Two Months of 2015