Steve, age 55, retired last year on disability due to back problems. Before retirement, his employer paid 75% of his disability insurance premiums.

20. Steve, age 55, retired last year on disability due to back problems. Before retirement, his employer paid 75% of his disability insurance premiums. Last year, Steve received $1,350 per month from disability (for 12 months). How much of Steve's disability payments should be reported as taxable income?

a) $12,150

b) $16,200

c) $ 4,050

d) $        0