Samuel slips on an icy spot in front of an apartment and is hospitalized for three weeks. The owner of the apartment pays Samuel's $14,000 medical expenses and gives him $4,000 for his pain and suffering. Samuel receives his regular $1,800 salary from his employer while he couldn't work and also receives $7,000 in disability pay from a plan that he had purchased. Samuel's gross income from these payments is:

Question

Quizplus · Accepted Answer

The $1,800 salary Samuel receives from his employer is considered taxable income. The medical expenses and pain and suffering compensation are not taxable, and the disability pay from a plan he purchased is also not taxable.

Samuel Slips on an Icy Spot in Front of an Apartment