Question
Terry was ill for three months and missed work during this period. During his illness, Terry received $7,250 in sick pay from a disability insurance
Terry was ill for three months and missed work during this period. During his illness, Terry received $7,250 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.)
b. Terry paid $5,350 in premiums for his disability insurance this year.
c. Terrys employer paid the $5,350 in premiums for Terry, but Terry elected to have his employer include the $5,350 as compensation on Terrys W-2.
d. Terry has disability insurance whose cost is shared with his employer. Terrys employer paid $4,500 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $850 of premiums from his after-tax salary. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started