Zach's Income Calculation After an Auto Accident

Following an auto accident, Zach received various payments that affect his income calculation. Among these payments, Zach must include $18,000 in his gross income. This amount is related to disability pay, which is considered a taxable fringe benefit.

It is important to note that certain payments, such as those related to insurance premiums, are not included in the calculation of gross income. In Zach's case, his health insurance premiums paid by his employer, as well as his hospital bills covered by health insurance, do not need to be included in his gross income.

However, disability payments, such as the $18,000 Zach received, are classified as taxable fringe benefits and must be included in his gross income. Therefore, the correct amount for Zach to include in his gross income is $18,000.