Ben was hospitalized for back problems. While he was away from the job, he collected his regular salary from an employer-sponsored income protection insurance policy. Ben's employer-sponsored hospitalization insurance policy also paid for 90% of his

medical expenses. Ben also collected on an income protection policy that he purchased. Which of the above sources of income are taxable? Explain the basis for excluding any item or items.

Only the collections on the employer-sponsored income protection policy are subject to tax. The hospitalization benefits received from the employer sponsored plan are specifically excluded. Both the premiums and the payments can be excluded. The amounts Ben collected on a policy he purchased are specifically excluded under the rationale that the payments are a recovery of Ben's premiums.