G was injured when an elevator at his place of work fell three floors, permanently losing the use of his left hand.As a result, he received disability income of $700 per month for six months during the current year.G's employer paid 60 percent of the annual premium on the disability policy, and G paid the remainder.The amount included in G's gross income is

Question

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The amount included in G's gross income is the portion of the disability income that corresponds to the employer-paid premiums. Since the employer paid 60% of the premiums, 60% of the total disability income ($700 x 6 months = $4,200) is taxable. Therefore, $4,200 x 60% = $2,520 is included in G's gross income.

G Was Injured When an Elevator at His Place of Work