Basic Federal Income Taxation: Gross Income: Damages and Related Receipts

This lesson will introduce users to the procedure to account for medical expenses, accidents, and proper deductions for medical insurance. Questions cover Internal Revenue Code sections 104, 105, and 106.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Apply § 106(a).
2. Explain when an employee can exclude from gross income insurance proceeds from his medical coverage.
3. Explain when workers' compensation amounts are excluded or included in gross income.
4. Explain when amounts received for physical injuries are excluded or included in gross income.
5. Explain when damages for emotional distress are excluded or included in gross income.