Sam was unemployed for the first two months of 2019.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 this is $18,000 ($4,000 + $14,000).

Question

Quizplus · Accepted Answer

Sam received $4,000 of state unemployment benefits and earned $14,000 from working, making his total income $18,000. The $5,000 of workers' compensation benefits does not count towards his gross income for federal tax purposes.

Sam Was Unemployed for the First Two Months of 2019