Steve worked as a tech supervisor for a computer company. In September of this year, he was laid off. He was paid unemployment compensation for the rest of the year totaling S7,000. Which of the following is true? a Steve will have to report all S7,000 of the unemployment compensation as income. b. Unemployment compensation is never taxable. c Steve will have to report $4,600 of the unemployment compensation as income. d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable. e None of these choices are true

Steve worked as a tech supervisor for a computer company. In September of this year, he was laid off. He was paid unemployment compensation for the rest of the year totaling S7,000. Which of the following is true? a Steve will have to report all S7,000 of the unemployment compensation as income. b. Unemployment compensation is never taxable. c Steve will have to report $4,600 of the unemployment compensation as income. d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable. e None of these choices are true

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 4DQ

See similar textbooks

Similar questions

During 2019, Jake Gore worked for two different employers. Until May, he worked for Wonderman Construction Company in Kansas City, Kansas, and earned 21,500. The state unemployment rate for Wonderman is 4.6%. He then changed jobs and worked for Buxmont Improvement Company in Mobile, Alabama, and earned 33,100 for the rest of the year. The state unemployment rate for Buxmont is 5.1%. Determine the unemployment taxes (FUTA and SUTA) that would be paid by: a. Wonderman Construction Company................................ _______ b. Buxmont Improvement Company.................................... _______
Douglas Druper is single and was unemployed from August through November 2019. During this time, he received $2,000 in unemployment compensation. Douglas also received the following income during 2021: Wages $11,000 Interest income 200 Contest winnings 1,200 Douglas did not have any adjustments to income for 2021. How much, if any, of the unemployment compensation should Douglas include in gross income? a. $0 b. $500 c. $1,100 d. $1,200 e. $2,000
Becky is a non-exempt employee who makes $43,500 per year. She is paid semi-monthly. She did not work any overtime last pay period. What is Becky’s gross pay? please answer fast i give upvote
Mr. Nassir works as a sales agent in an insurance company and is responsible for selling life insurance. Mr. Nassir's basic salary is OMR 500 per month. However, as per his employment contract, he receives an extra income of OMR 30 for every life insurance he sells. This makes his total salary significantly different from his basic salary. This extra income belongs to which of the following categories? Illegal income Deduction Fringe benefit Incentive
Sally hires a maid to work in her home for $1,030 per month. The maid is 25 years old and not related to Sally. During 2018, the maid worked 5 months for Sally. Do not round immediate computations and round your final answers to two decimal places. a. What is the amount of Social Security tax Sally must pay as the maid's employer?$ b. What is the amount of Medicare tax Sally must pay as the maid's employer? Sally's employer's Medicare tax: $ c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages? Sally should withhold for Social Security and Medicare tax of: $
Assume the year is 2021. Harold’s father, John, requires assistance at home 4 hours each day, 5 days a week. Harold hires Bernice to come to John’s home to assist him during that time. What category of worker is Bernice? What must Harold pay Bernice for one week? What taxes should Harold withhold from Bernice’s salary? What employment taxes does Harold have to pay on Bernice’s pay? Does Harold or Bernice owe FICA and in what amount depending on who has the responsibility? Do Harold or Bernice owe FUTA on her wages?
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week for 42 weeks during the current year. Do not round immediate computations and round your final answers to two decimal places. a. What is the employer's portion of Social Security and Medicare tax for the nanny that Ann should pay when she files her Form 1040 for 2018?$ b. What is the nanny's portion of the Social Security and Medicare tax?$
On the December 31, 2015, payday, Jo is out sick. Prior to this $3,000 paycheck, her 2015 taxable wages were $120,000. If Jo picked up her paycheck on-January 4, 2016, how much FICA should Jo’s employer have withheld? $43.50 $169.50 $229.50 None of the above
Interview Notes Leon Martin is single and has never been married. Leon earned wages of $23,000 during the first half of the year. Leon lost his job in July and received a total of $9,000 in unemployment compensation. Leon is a barber and took a class at the community barber college to improve his barbering skills. He paid the cost of tuition and a course-related book. His qualified education expenses were $2,500. Leon also paid student loan interest for the courses he previously took to earn his Bachelor’s degree. For 2022, he paid student loan interest of $550. Leon does not have any dependents. Leon is a U.S. citizen with a valid Social Security number. 13. Leon can claim the student loan interest deduction as an adjustment to income on his tax return. True False
Morgan is paid $2,947.75 per week. What is the amount of federal income tax withheld from Morgan's paycheck under the following conditions? Assume that Morgan has only one job or that step 2 of Form W- 4 is not checked. Also, her employer uses the Percentage Method Tables for Automated Systems. Use percentage method tables for automated systems. Required: a. Morgan is single, with no dependents. b. Morgan is married (spouse does not work) and claims two dependents who are under the age of 17. c. Morgan is single, claims no dependents, but wants $60 in additional withholding. Note: For all requirements, round your intermediate computations and final answers to 2 decimal places. a. Federal income tax withholdings b. Federal income tax withholdings c. Federal income tax withholdings Amount
Danny Floro works as a caretaker with a monthly salary of P5,000 in the house of Atty. Panfilo Salango. In the current month, Atty. Salango successfully defended the former against a vehicular accident case. The prevailing lawyer’s fee of Atty. Salango is P6,000, which they agreed that Mr. Floro, instead of paying his employer, shall not receive cash for the said month. How much is compensation income of Floro in the current month?
How is penalty pay worked up for problems like these? Lorna Hall’s real estate tax of $2,010.88 was due on December 14, 2019. Lorna lost her job and could not pay her tax bill until February 27, 2020. The penalty for late payment is 612% ordinary interest. (Use Days in a year table.)a. What is the penalty Lorna must pay? (Round your answer to the nearest cent.) b. What is the total amount Lorna must pay on February 27? (Round your answer to the nearest cent.)