While staying at Vail Heights Resort,Jared falls over a pool cleaning vacuum hose left near the edge of the swimming pool,and suffers severe internal injuries.As part of the settlement,Jared receives the following amounts:

$$\begin{array} {l r }
\text { Pain and Suffering } &\$ 105,000 \
\text { Loss of Wages } &16,200
\end{array}$$

How much of the settlement must be included in Jared's Gross Income?

Question

While staying at Vail Heights Resort,Jared falls over a pool cleaning vacuum hose left near the edge of the swimming pool,and suffers severe internal injuries.As part of the settlement,Jared receives the following amounts:

$$\begin{array} {l r } 
\text { Pain and Suffering } &\$ 105,000 \
\text { Loss of Wages } &16,200
\end{array}$$

How much of the settlement must be included in Jared's Gross Income?

Quizplus · Accepted Answer

Compensation for personal physical injuries, including pain and suffering and loss of wages, is generally excluded from gross income under the tax code.

While Staying at Vail Heights Resort,Jared Falls Over a Pool Pain and Suffering $105,000 Loss of Wages 16,200\begin{array} {l r } \text { Pain and Suffering } &\$ 105,000 \\\text { Loss of Wages } &16,200\end{array} Pain and Suffering Loss of Wages ​$105,00016,200​

While Staying at Vail Heights Resort,Jared Falls Over a Pool $\begin{array} {l r } \text { Pain and Suffering } &\$ 105,000 \\\text { Loss of Wages } &16,200\end{array}$