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Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
Generally, gross income does not include amounts received
through accident or health insurance for personal injuries or
sickness, other than amounts received by an employee to the
extent such amounts are: (1) Attributable to contributions by
the employer which were not includable in the gross income of the
employee; or (2) paid by the employer. See sec. 104(a)(3). If
amounts received by an employee through accident or health
insurance for personal injuries or sickness are: either (1)
Attributable to contributions by the employer that were not
includable in the gross income of the employee; or (2) paid by
the employer, then the amounts are specifically included in the
employee’s gross income under section 105(a).
Four conditions must be met for section 105(a) to apply.
See Kees v. Commissioner, T.C. Memo. 1999-41. First, the amounts
must be received through accident or health insurance; second,
the amounts must be for personal injuries or sickness; third, the
amounts must be attributable to contributions made by the
employer; and fourth, the employer’s contributions must not have
been includable in the employee’s gross income.
In the instant case, petitioner received $9,481 from the
Fortis Co. under the Fortis policy, a group long-term disability
insurance program. Petitioner received the benefits for a
disability caused by degenerative disk disease of the spine and
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