Question
Are these actions taxable? If yes, where would it go on the tax return (2021) 1. On April 1, 2020, Jennifer slipped in the Small
Are these actions taxable? If yes, where would it go on the tax return (2021)
1. On April 1, 2020, Jennifer slipped in the Small World Elementary lunchroom and injured her back. Jennifer received $1,200 in workers compensation benefits because her work- related injury caused her to miss two weeks of work. She also received a $2,645 reimbursement for medical expenses from the health insurance company. Small World Elementary pays the premiums for Jennifers health insurance policy as a nontaxable fringe benefit.
2. On May 17, 2020, Keith and Jennifer received a federal income tax refund of $975 from their 2019 federal income tax return.
3. On June 5, 2020, Keith and Jennifer sold their home in Henderson, Nevada, for $510,000 (net of commissions). Keith and Jennifer purchased the home 11 years ago for $470,000. On July 12, 2020, they bought a new home for $675,000.
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