This year Zach was injured in an auto accident. As a result, he received the following payme1n0t2s).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 thisyear.Zach's hospital bills totaled $4,500 and were paid by his health insurance. Zach has healthinsurance 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?

Question

Quizplus · Accepted Answer

The $18,000 disability pay is taxable because the premiums were paid by the employer and the benefit is not a reimbursement for medical expenses.

This Year Zach Was Injured in an Auto Accident