Final answer:
Sam's Federal gross income is $18,000, which includes $4,000 of state unemployment benefits and $14,000 earnings from work. The $5,000 of workers' compensation benefits are not included as they are generally not taxable.
Step-by-step explanation:
When considering Sam's Federal gross income, we need to differentiate between earnings from work and government benefits. Earnings from work are generally taxable and must be included in gross income, whereas some government benefits may not be taxable.
Sam was unemployed for the first two months and received $4,000 in state unemployment benefits. These benefits are typically considered taxable income. Over the next six months, he earned $14,000 from employment, which is also taxable. However, the $5,000 he received in workers' compensation benefits is generally not taxable if paid under a workers' compensation act or a statute in the nature of a workers' compensation act due to job-related injury or sickness.
Therefore, Sam's Federal gross income would include the unemployment benefits and earnings from work, totaling $18,000 ($4,000 + $14,000). The workers' compensation benefits would not be included.