The following items under compensation for sickness or injury are exempt from income and do not have to be reported on the taxpayer's tax return:

Question

Quizplus · Accepted Answer

Workers' compensation payments are the only item listed that is exempt from income and does not have to be reported on the taxpayer's tax return. Sick pay and welfare payments are taxable income and must be reported. The option D is incorrect as it includes an item that is taxable income (welfare payments).

The Following Items Under Compensation for Sickness or Injury Are