Can someone help me with the question below?
In 2019, Uriah Stone received the following interest payments:
Interest of $400 on refund of federal income tax for 2017
Interest of $300 on award for personal injuries sustained in an automobile accident during 2016
Interest of $1,500 on municipal bonds
Interest of $1,000 on United States savings bonds (Series HH)
What amount, if any, should Stone report as interest income on his 2019 tax return?
The answer is $1,700. I understand why $400 and $1,000 are included, but why is the $300 also included? My Roger book says damages for bodily injury/pain/suffering are not included in income.
"It takes as much energy to wish as it does to
plan." -Eleanor Roosevelt
Licensed CPA in IL
FAR-72, 55, 82 (Roger + Wiley TB)
AUD-66, 92 (Roger)
REG-71, 81 (Roger + Wiley TB)
BEC-77Â (Roger)
Ethics- 93