QUESTION 9 Tobias was injured while working at his job. During the year, he received $25,000 workers' compensation as a result of his injuries. He also sued his employer, which resulted in the following settlement: $4,000 for personal injuries $10,000 for emotional distress $30,000 for punitive damages. What is Tobias' adjusted gross income (AGI) from these transactions? $65,000 $69,000 $30,000 $40,000

QUESTION 9 Tobias was injured while working at his job. During the year, he received $25,000 workers' compensation as a result of his injuries. He also sued his employer, which resulted in the following settlement: $4,000 for personal injuries $10,000 for emotional distress $30,000 for punitive damages. What is Tobias' adjusted gross income (AGI) from these transactions? $65,000 $69,000 $30,000 $40,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 18P

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Kim was seriously injured at her job. As a result of her injury, she received the following payments: 5,000 reimbursement from employer-provided health insurance for medical expenses paid by Kim. The premiums this year paid by Kims employer totaled 6,000. 15,000 disability pay. Kim has disability insurance provided by her employer as a nontaxable fringe benefit. Kims employer paid 6,000 in disability premiums this year on behalf of Kim. 10,000 received for damages for personal physical injury. 200,000 for punitive damages. What amount is taxable to Kim? a. 215,000 b. 225,000 c. 236,000 d. 0
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