Courtney purchased disability and accident insurance in 2019. In April of 2020, she broke her wrist in a mountain biking accident and could not work for two weeks. Courtney’s doctor bills totaled $2,000, of which $1,600 was reimbursed by her health insurance purchased by her employer.
In addition, Courtney received $600 for lost wages due to the accident from a disability insurance policy in which she pays the premium. She also received $400 for lost wages due to the accident from a disability insurance policy in which her employer pays the premium.

How much of the amounts above are Courtney allowed to exclude from gross income in 2020?

Answer rating: 100% (QA)

The IRS excludes from gross income ll funds received s compenstory dmges when person hs suffere... View the full answer