general account Which of the following items results in gross income to Sandy?a. Workers' compensation for an injury received while working in heremployer's factory.b. Life insurance proceeds received following her husband's death.c. Earnings on Sandy's Roth IRA credited to her account during theyear (but not withdrawn).d. Both a. and c.e. None of the above.

Option a: This option is incorrect because, as per Section 104 (a) (1) of IRC, the workers'…

Answered: Which of the following items results in…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 2BCRQ

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All the following are exampies of non-taxable income, except Select one O a. Proceeds received as beneficiary of a life insurance contract due to the death of the insured O b. income from illegal activities OC Shares of stock received as an inheritance O d. Cash received as a gift Oe All of these are non-taxable
Old Age Security (OAS) differs from the CPP in many ways. Which of the following statements does NOT represent an accurate contrast? a OAS payments are reduced according to how high your other sources of retirement income are, whereas CPP is not affected by other income sources b OAS does not provide any financial allowance for a widowed partner of someone who received OAS, whereas CPP does c OAS is paid for with tax dollars, rather than like CPP through employer/employee contributions d OAS is not related to the amount of money you made while you were working, whereas CPP is
17. Which of the following expenses, if any, is/are deductible? a.Contribution to an IRA. b.Job-hunting expenses of a fishing guide to become an insurance salesman. c.Costs involved in maintaining an office in the home by a self-employed insurance adjuster. Taxpayer's wife also uses the office as a meeting place for her bridge club. d.Cost of moving to first job location. Taxpayer just graduated from college.
As the legal representative of your sister's estate, you would like to prepare an optional return for income from rights or things. Which of the following sources of income would you not include on the rights and things return? a) Interest from a savings account at a chartered bank earned prior to death. Uncashed matured bond coupons. c) Harvested farm crops. b) Unpaid dividends declared before d) the day the person died but receivable after her death.
1. Payments made by an employer for health insurance on behalf of an employee are considered income to the employee at the time the payments are made. a. True b. False 2. Joey is a single taxpayer. Joey's employer pays $1,800 per year for his health insurance. During the year, Joey had medical expenses of $2,500 and the insurance company reimbursed him for the full $2,500. How much of the above amounts, if any, must be included in Joey's gross income? Why?
True or False 1. The proceeds of life insurance received by the heirs of the insured uponhis death is excluded in gross income.2. The amount received in excess of the premium paid in an insurance contractconstitutes an item of gross income.3. Donated income is included in the gross income of the donee.4. Compensation for injuries and sickness constitutes profit; hence, aninclusion gross income.5. It is sufficient that the employee rendered more than 10 years of servicefor his retirement benefit to be exempt.
24. Which of the following, if any, correctly describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit.
The following four Cases make different assumptions with respect to the amounts of income and deductions of Kirk Maddox for the current year. View the cases. Required For each Case, calculate Mr. Maddox's Net Income (Division B income). Indicate the amount and type of any loss carry overs that would be available at the end of the current year, or state that no carry overs are available. Case A. What is Mr. Maddox's Net Income (Division B income)? Case A. What is the amount and type of any loss carry overs that would be available at the end of the current year in this case, if any? (For entries with a $0 balance, make sure to enter "0" in the appropriate input field.) $ What is the amount of net capital loss carry overs? What is the amount of non-capital loss carry overs? 84,200
please show the work
All of the following income items are includible in an employee's gross income except: a, Severance pay for cancellation of employment b, Unemployment compensation c, Payments from employer while sick or injured d, Medical insurance premium paid by employer for employee and spouse e, Moving expense reimbursement
Which of the following statements is false regarding the earned income credit (EIC)? Multiple Choice If certain requirements are met, a taxpayer may receive advance payments of EIC. Maximum amount of the credit depends on the earned income and number of children. A taxpayer without children cannot claim the credit. The credit is refundable.
1. Deductible transportation expenses: a.Do not include the normal costs of commuting. b.Do not include daily expenses for transportation between the taxpayer's home and temporary work locations if the taxpayer has a regular place of business. c.Include only costs incurred while away from home. d.Include meals and lodging. 2. Barry is a self-employed attorney who travels to New York on a business trip during 2021. Barry's expenses were as follows: Airfare $550 Taxis 40 Restaurant meals 150 Lodging 350 How much may Barry deduct as travel expenses for the trip? a.$0 b.$1,015 c.$940 d.$1,090 e.None of these choices are correct. 3. Which of the following is deductible as dues, subscriptions, or publications? a.Subscription to the "Journal of Taxation" for a tax attorney b.Dues to a health club for a doctor c.Dues to the drama club for a student d.Subscription to "Vogue" magazine for a corporate president e.None of these choices are correct.

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