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 exempt from income and do not have to be reported on the taxpayer's tax return. Sick pay and welfare payments, however, are taxable income and must be reported. Therefore, option C is the correct choice. Option D is incorrect because it includes welfare payments, which are taxable income.

The Following Items Under Compensation for Sickness or Injury Are