During the current year Hal Leff sustained a serious injury in the course of his employment. As a result of this injury, Hal received the following payments during the year:

Workers’ compensation

$2,400

Reimbursement from his employer’s accident and health plan for medical expenses paid by Hal and not deducted by him

1,800

Damages for physical injuries

8,000

The amount to be included in Hal’s gross income for the current year should be

  1. $12,200
  2. $ 8,000
  3. $ 1,800
  4. $0