In 2018 , Windsor Knott, an 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:

Determine Knott's tax liability with regard to these payments. If the medical expenses had been deducted from Knott's 2018 tax return and reimbursement was received in 2019 , how would the reimbursement be reflected in the 2019 return?

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NC Workers' compensation NO Medical expenses reimbursement Disability insurance benefits (insurance paid by taxpayer) Accident and health insurance benefits (company policy benefits based on the degree of permanent injury) $ 9,000 10,000 4,000 9,500