Determine tax liability with regard to these payment

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Reference no: EM131259491

In 2016, windsor knott, and employee of the victoria tie company, was seriously injured in the factory stockroom. He was hospitalized for 30 days and lost partial use of his left hand. During his hospitalization and recovery period, he received the following:

Workers Compensation: $9,000

Medical expenses reimbursement: 10,000

Disability insurance benefits (insurance paid by taxpayer): 4,000

Accident and health insurance benefits (company policy benefits based on the degree of permanent injury): 9,500

Determine Knott's tax liability with regard to these payments. If the medical expenses had been deducted from Knott's 2016 tax return and reimbursement was received in 2017, how would the reimbursement be reflected in the 2017 return?

Reference no: EM131259491

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