In 2015,Theresa was in an automobile accident and suffered physical injuries.The accident was caused by Ramon's negligence.In 2016,Theresa collected from his insurance company.She received $15,000 for loss of income,$10,000 for pain and suffering,$50,000 for punitive damages,and $6,000 for medical expenses which she had deducted on her 2015 tax return (the amount in excess of 10% of adjusted gross income).As a result of the above,Theresa's 2016 gross income is increased by $56,000.

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Theresa received a total of $81,000 ($15,000 + $10,000 + $50,000 + $6,000) in compensation from Ramon's insurance company. Since the medical expenses were previously deducted on her 2015 tax return, they cannot be included in her 2016 gross income. Therefore, her 2016 gross income increased by $75,000 ($15,000 + $10,000 + $50,000).

In 2015,Theresa Was in an Automobile Accident and Suffered Physical