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? Note: Leave no answer blank. Enter zero if applicable.
a. Terry has disability insurance provided by his employer as a nontaxable fringe benefit. Terry's employer paid $5,860 in disability premiums for Terry this year. What is the amount included in Gross Income?
b. Terry paid $5,860 in premiums for his disability insurance this year. What is the amount included in Gross Income?
c. Terry's employer paid the $5,860 in premiums for Terry, but Terry elected to have his employer include the $5,860 as compensation on Terry's W-2. What is the amount included in Gross Income?
d. 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. What is the amount included in Gross Income? (Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)
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