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Andres has received the following benefits this year: Salary $92000 Contribution to qualified pension plan $10200...

Andres has received the following benefits this year:

Salary $92000

Contribution to qualified pension plan $10200

Qualified health insurance premiums $8400

Year-end bonus $15000

Group - term life insurance premiums (face=$40000) 1750

whole life insurance premiums (face=$100000) 2420

Disability insurance premiums $ 1800

Besides these benefits, Andres missed work for two months due to an illness. During his illness, Andres received $6500 in sick pay from a disability insurance policy. Assume Andres has disability insurance provided by his employer as a nontaxable fringe benefit. What amount if any must Andres include in gross income this year?

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Answer #1

The Salary , Bonus and Whole Life Insurance Premium is Taxable but the pension contribution, health Insurance, Group Term Life Insurance and Disability insurance premium are excluded from Income.       

CALCULATION OF GROSS INCOME

PARTICULARS

AMOUNT (IN $)

SALARY

92000

Contribution to qualifies pension plan

0

Qualified health Insurance premium

0

Year End Bonus

15000

Life Insurance Premium Group Term

0

Whole Life Insurance Premiums

2420

Disability Insurance Premium

0

GROSS TOTAL INCOME

109420
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