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1. Cash received by an employee from an employer: a. Is never included in gross income until it is earned. b. Is not taxable unless

1. Cash received by an employee from an employer:

a. Is never included in gross income until it is earned.

b. Is not taxable unless the employer is legally obligated to make the payment.

c. May never be excluded from gross income.

d. Will be excluded from gross income only if it is a loan.

e. May be excluded from gross income if it is reimbursement for medical expenses.

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