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a. Don was injured in an automobile accident. The other driver's insurance company paid him $1,800 to cover medical expenses and a compensatory amount of
a. Don was injured in an automobile accident. The other driver's insurance company paid him $1,800 to cover medical expenses and a compensatory amount of $5,400 for pain and suffering. b. A newspaper article stated that Garret had been convicted of tax evasion. Garret, in fact, had never been accused of tax evasion. He sued and won a compensatory settlement of $4,400 from the newspaper c. Hank, who pays the cost of a commercial disability income policy, fell and injured his back. He was unable to work for six months. The insurance company paid him $2,400 per month during the time he was unable to work. d. Kendell fell and injured his knee. He was unable to work for four months. His employer-financed disability income policy paid Kendell $1,700 per month during the time he was unable to work. e. Scott suffered a stroke. He was unable to work for five months. His employer continued to Requirement For each scenario, determine which of the payments for sickness and injury must be included in the taxpayer's gross income. (Enter a "0" for any amounts that should not be included in the taxp a. Don was injured in an automobile accident. The other driver's insurance company paid him $1,800 to cover medical expenses and a compensatory amount of $5,400 for pain and suffering. The amount received to cover medical expenses that must be included as gross income is The amount paid to him for pain and suffering that must be included in gross income is
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