During this year, Jack was injured on his job. As a result of the injury, he rec

Question

During this year, Jack was injured on his job. As a result of the injury, he received the following payments during this year:

Workers compensation $2,600

Reimbursement from his employer for medical expenses paid by Jack (medical plan) $1,200

Damages for physical injuries $10,000

What is the amount to be included in Jack’s gross income for the current year?

Which of the following fringe benefits would be excluded from an employee’s gross income?
1. Business magazine subscriptions paid for by an employer in the names of various employees.
2. Season tickets to basketball games.
3. Parking provided near its business by an employer for its employees.
4. On-premises athletic facilities provided by an employer to its employees.

Explanation / Answer

1. Jack was Injured on Job.

Here Gross Total Income Does not include

-- Amount received under workmen compesation for personal injuries

-- Amount received for damage of physical injureis

-- Amount rembursed through medical plan ( othen than amount received by an employee to the extent of

amuont attributable to contribution by employer which is not include in gross total income or Paid by employer)

so here all the payment are not included in Gross Income.

Amount Included in Jack gross income = 0

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