Question

Bonnie purchases a medical and disability insurance policy. The insurance company pays Bonnie $1,000 per week to replace wages she loses while in the hospital. Is that gross income?

Answer 1

No, the payment Bonnie receives from the insurance company to replace her lost wages while in the hospital is not considered gross income.

Step-by-step explanation:

No, the payment Bonnie receives from the insurance company to replace her lost wages while in the hospital is not considered gross income. Gross income refers to the total amount of income earned before any deductions or taxes are taken out. In this case, Bonnie is receiving the insurance payment as a replacement for her lost wages, and it is not considered part of her regular income.