The taxpayer receives $1,600 of regular interest. O d. The taxpayer receives $1,150 of nontaxable interest. Sydney's employer provides his employees with an insurance policy that pays sick benefits if the employee is out of work due to illness for longer than a specified period. His employer pays 70% of the premiums, and Sydney pays the remaining 30%. When Sydney was out of work, he was paid $4,500 in sick pay from the policy.

How much, if any, of the sick pay received is taxable to Sydney?

Answer rating: 100% (QA)

The taxable portion of sick pay received by Sydney would depend on whether he paid the premiums for ... View the full answer