An automobile accident and suffered physical injuries


In 2011, Khalid was in an automobile accident and suffered physical injuries. The accident was caused by Rashad's negligence. In 2012, Khalid collected from the insurance company. He also received $15,000 for loss of income, $5,000 punitive damages, and $8,000 for medical expenses which he had deducted on his 2011 tax return. His other medical expenses exceeded 7.5% of his AGI, and his total itemized deductions were $20,000. As a result of the above, Khalid's 2012 gross income is increased by?

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Accounting Basics: An automobile accident and suffered physical injuries
Reference No:- TGS0691697

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