During the current year Hal Leff sustained a serious injury in the course of his employment. As a result of this injury, Hal received the following payments during the year:
Worker's compensation ------------ $2,400
Reimbursement from his employer's accident
and health plan for medical expenses paid by
Hal and not deducted by him --------------------$1,800
Damages for physical injuries ----------------------$8,000
The amount to be included in Hal's gross income for the current year should be
a. $12,200
b. $8,000
c. $1,800
d. $0
Answer: D
Tax
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