This year Zach was injured in an auto accident.As a result he received the following payments.Zach received $18,000 of disability pay.Zach has disability insurance provided by his employer as a nontaxable fringe benefit.Zach's employer paid $4,300 in disability premiums for Zach this year.Zach's hospital bills totaled $4,500 and were paid by his health insurance.Zach has health insurance provided by his employer as a nontaxable fringe benefit.Zach's employer paid $6,250 in health insurance premiums for Zach this year.What amount must Zach include in his gross income?

Question

Quizplus · Accepted Answer

The $18,000 disability pay is taxable because the premiums were paid by the employer and the benefit is not a nontaxable fringe benefit.

This Year Zach Was Injured in an Auto Accident