Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Terry was ill for three months and missed work during this period. During his illness, Terry received $4,200 in sick pay from a disability insurance

Terry was ill for three months and missed work during this period. During his illness, Terry received $4,200 in sick pay from a disability insurance policy.

What amounts are included in Terrys gross income under the following independent circumstances? (Leave no answer blank. Enter zero if applicable.)

a.

Terry has disability insurance provided by his employer as a nontaxable fringe benefit. Terrys employer paid $1,540 in disability premiums for Terry this year.

amount included________

b.

Terry paid $1,540 in premiums for his disability insurance this year.

amount included________

c.

Terrys employer paid the $1,540 in premiums for Terry, but Terry elected to have his employer include the $1,540 as compensation on Terrys W-2.

amount included________

d.

Terry has disability insurance whose cost is shared with his employer. Terrys employer paid $1,000 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $540 of premiums from his after-tax salary. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

amount included________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

* What is the importance of soil testing in civil engineering?

Answered: 1 week ago

Question

Explain the concept of shear force and bending moment in beams.

Answered: 1 week ago

Question

Using Language That Works

Answered: 1 week ago

Question

4. Are my sources relevant?

Answered: 1 week ago