What amounts are included in gross income for the following taxpayers?

Explain your answers.

a) Janus sued Tiny Toys for personal injuries from swallowing a toy. Janus was paid $30,000 for medical costs and $250,000 for punitive damages.

b) Carl was injured in a car accident. Carl’s insurance paid him $500 to reimburse his medical expenses and an additional $250 for the emotional distress Carl suffered as a result of the accident.

c) Ajax published a story about Pete and as a result Pete sued Ajax for damage to his reputation. Ajax lost in court and paid Pete an award of $20,000.

d) Bevis was laid off from his job last month. This month he drew $800 in unemployment benefits.