Exercise 5-20 (Algorithmic) (L0.2) Valentino is a patient in a nursing home for 51 days of 2020. While in the nursing home, he incurs total costs of $23,256. Medicare pays $13,954 of the costs. Valentino receives $25,582 from his long-term care insurance policy, which pays while he is in the facility. Assume that the Federal daily excludible amount for Valentino is $380. of the $25,582, what amount may Valentino exclude from his gross income? 20,426 x Feedback Check My Work If an income item is within the all-inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specifi for doing so. Problem 5-31 (Algorithmic) (LO. 2) Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be induded in Darlene's gross income in the table provided. a. Donald's employer pald Darlene an amount equal to Donald's three months' salary ($55,800), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $8,600 in accrued salary that was paid to Darlene. cDonald's employer had provided Donald with group term life Insurance of $225,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $13,200 had been included in Donald's gross income under $ 79. d. Donald had purchased a life insurance policy (premiums totaled $194,000) that paid $361,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annulty of $34,000 each year for a 20-year period. She received her first installment this year. If an amount is zero, enter "O". Round any division to two decimal places. Round your final answers to nearest whole dollar. Amount Received Amount Taxable Employer payments $55,800 b. Accrued salary, carped before death $8,600 C. Group term life insurance proceeds $225,000 d. Ufe Insurance proceeds, annuity $34,000 Total Kevin, age 67, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2020: Hospitalization insurance premiums for Kevin and his dependents. The cost of the coverage for Kevin is $2,025 per year, and the additional cost for his dependents is $5,000 per year. The plan has a $2,000 deductible, but his employer contributed $1,500 to Kevin's Health Savings Account (HSA). Kevin withdrew only $1,000 from the HSA, and the account earned $40 of Interest during the year. Insurance premiums of $775 for salary continuation payments. Under the plan, Kevin will receive his regular salary in the event he is unable to work due to illness, Kevin collected $4,100 on the policy to replace lost wages while he was ill during the year. Kevin is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his $1,800 tuition under a plan available to all full-time employees. For each of the following items, enter the amount to be included in Kevin's gross income. If an amount is zero, enter "o". Amount Included a. Hospitalization insurance premiums for Kevin and his dependents. b. Insurance premiums of $775 for salary continuation payments. c. The $4,100 Kevin collected on the salary continuation policy to replace lost wages while he was ill during the year. d. Tuition reimbursement under a plan available to all full-time employees
