Katie,a self-employed CPA,purchased an accident and disability insurance policy.As the result of an auto accident,Katie was unable to work and received $3,000 of disability benefits per month for seven months.The benefits were based on her estimated monthly income and should be reported as gross income.

Question

Quizplus · Accepted Answer

Disability benefits received from a policy purchased by an individual with after-tax dollars are generally not taxable and do not need to be reported as gross income.

Katie,a Self-Employed CPA,purchased an Accident and Disability Insurance Policy