Brad was disabled for part of the year and he received $11,500 of benefits from a disability plan purchased by Brad's employer as a nontaxable fringe benefit.Brad must include all $11,500 of benefits in his gross income because Brad was not taxed on the disability insurance premiums paid by his employer.

Question

Quizplus · Accepted Answer

Since the disability plan was purchased by Brad's employer as a nontaxable fringe benefit, and Brad did not pay the premiums with after-tax dollars, the benefits received from such a plan are generally taxable and must be included in Brad's gross income.

Brad Was Disabled for Part of the Year and He