Answered

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Alan's employer maintains a long-term disability income plan on which it pays all premiums. Last year, Alan received $40,000 in benefits under the plan during his period of disability. How much of the benefits received, if any, must Alan include in his income

Sagot :

jepessoa

Answer:

$40,000

Explanation:

If Alan had paid the disability insurance himself, then disability income would not be taxable. But since Alan's employer paid the disability insurance premiums, then any disability payments that Alan received must be included in his gross income and are taxable.

The amount of the benefit received if any must Alan include in his income should be $40,000.

The following information should be considered:

  • In the case when Alan had paid the disability insurance himself, then disability income would not be taxable.
  • But since Alan's employer paid the disability insurance premiums, then any disability payments that Alan received must be included in his gross income and are taxable.

Learn more: brainly.com/question/16911495

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