Joe Black, a police officer, was injured in the line of duty. He received the following during the current year: What is the amount that is taxable?

Question

Joe Black, a police officer, was injured in the line of duty. He received the following during the current year:  What is the amount that is taxable?

Quizplus · Accepted Answer

The taxable amount for a police officer injured in the line of duty is limited to the amount of the officer's regular pay reduced by any nontaxable income received as a result of the injury. In this case, the code TB2922 on the form indicates that $9,000 was received as nontaxable income related to the injury. Therefore, the taxable amount is $66,000 (regular pay of $75,000 minus nontaxable income of $9,000).

Joe Black, a Police Officer, Was Injured in the Line