This year Zach was injured in an auto accident. As a result, he received the following payments.

Zach received $18,000 of disability pay. Zach has disability insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $4,300 in disability premiums for Zach this year.

Zach's hospital bills totaled $4,500 and were paid by his health insurance. Zach has health insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $6,250 in health insurance premiums for Zach this year.

What amount must Zach include in his gross income?

	A.	$4,500
	B.	Zero - None of these benefits is included in gross income.
	C.	$10,550
	D.	$22,500
	E.	$18,000