Sam was unemployed for the first two months of 2016.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 the above is $18,000 ($4,000 + $14,000).

Question

Quizplus · Accepted Answer

The statement correctly states that Sam's Federal gross income is $18,000, which is the sum of his unemployment benefits ($4,000) and his earnings from employment ($14,000). The workers' compensation benefits are not included in the calculation of gross income for federal tax purposes.

Sam Was Unemployed for the First Two Months of 2016