Question
Terry was ill for three months and missed work during this period. During the illness, Terry received $8,100 in sick pay from a disability insurance
Terry was ill for three months and missed work during this period. During the illness, Terry received $8,100 in sick pay from a disability insurance policy. What amounts are included in Terry's gross income under the following independent circumstances?
Terry and his employer share the cost of the disability insurance. Terry's employer paid $4,500 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $1,360 of premiums from his after-tax salary.
Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
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