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Jim's employer pays for 80% of the cost of a short-term disability income policy, and Jim pays for 20% of the cost. Jim becomes disabled

Jim's employer pays for 80% of the cost of a short-term disability income policy, and Jim pays for 20% of the cost. Jim becomes disabled and he collects $8,000 each month in income from the policy. Of each monthly payment of $8,000 that Jim receives, he would owe $400 in federal income taxes if his marginal tax rate is 25%?

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