Find how much of jack disability payments are taxable

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Problem 1: Jack, 60, retired in March on disability. Before retirement, his employer paid 100% of his disability insurance premiums and included the amount in his wages. Jack received a total of $5,800 disability benefits this year. How much of Jack's disability payments are taxable?

Select one:

a. $ 0
b. $2,900
c. $1,450
d. $5,800 This answer is incorrect. $5,800 is 100% of the disability payments. The insurance premiums paid by Jack's employer were included in his wages.

Reference no: EM132675478

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