Awards and Damages 76 A taxpayer received disability income of $6,000. All premiums on the health and accident policy were paid by his employer and included in his income. In addition, he received compensatory damages of $10,000 as a result of inadvertent poisoning at a local restaurant. He received no other income this year. How much income must be included on his tax return? A. $16,000 B. $10,000 C. $6,000 D. $0

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter18: Accounting Periods And Methods
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Awards and Damages
76 A taxpayer received disability income of $6,000. All
Cpremiums on the health and accident policy were paid by
his employer and included in his income. In addition, he
received compensatory damages of $10,000 as a result
of inadvertent poisoning at a local restaurant. He
received no other income this year. How much income
must be included on his tax return?
A. $16,000
B. $10,000
C. $6,000
D. $0
Transcribed Image Text:Awards and Damages 76 A taxpayer received disability income of $6,000. All Cpremiums on the health and accident policy were paid by his employer and included in his income. In addition, he received compensatory damages of $10,000 as a result of inadvertent poisoning at a local restaurant. He received no other income this year. How much income must be included on his tax return? A. $16,000 B. $10,000 C. $6,000 D. $0
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