Exercise 5-20 (Algorithmic) (LO. 2)

Valentino is a patient in a nursing home for 58 days of 2018. While in the nursing home, he incurs total costs of $25,056. Medicare pays $15,034 of the costs. Valentino receives $27,562 from his long-term care insurance policy, which pays while he is in the facility. Assume that the daily federal statutory amount for Valentino is $360.

Valentino may exclude $ of the $27,562 from his gross income.