Wages, Salaries, and Other Earnings
Members of the Armed Forces receive many different types of pay and allowances. Some are included in gross income, while some are excluded. Which of the following are excluded?
*Uniform allowances
*Monthly housing allowance of $300 received by a Marine officer
*Travel and per diem allowances
*Moving allowance for household and personal items
What is all are excluded.
Bob and Scott divorced in early 2019. The divorce decree states that Scott needs to pay alimony of $1,200 per month until Bob remarries. Where does Bob report this on his return?
What is nowhere. The law changed in 2018 that alimony is no longer reported.
Court awards and damages are always taxable.
What is False
What form will Phil report unemployment compensation payments received for tax year 2023?
What is Schedule 1, line 7, unemployment compensation
True or False
Taxable interest income includes interest received on Loans made to others and Money market funds.
What is "True" other sources include:
• Savings and some checking accounts
• Certificates of deposit (CDs) and other deferred interest accounts
• Insurance dividends, taxable in the year credited to the account or on an anniversary or other specified date if taxpayers can withdraw the interest
• Credit unions or cooperative banks
True or False
A Holiday bonus of $400 is excuded from income.
What is "False"
Mike is required through an unmodified, written separation agreement from 2009 to pay his former wife $1,500 a month for the next ten years. His ex-wife died in December 2015. The separation agreement provides that payments are payable to his ex-wife’s estate should she die before the ten-year period is over. How much may Randy deduct as alimony for 2018?
What is $0.
Inheritances are never taxable.
What is false
What form would you receive if you collected unemployment?
What is Form 1099-G
When taxpayers receive non-cash gifts or services for making a deposit or for opening an account in a financial institution, they may report the value as interest. For deposits less than $5,000, taxpayers must what amount as interest?
What is $10 as interest.
True or False
If the taxpayer returns to work after qualifying for workers’ compensation, salary payments they received for performing light duties are not taxable as wages.
What is "False"
In 2017 Sam and Zoey finalized their divorce. The divorce decree states that Zoey needs to pay $650 a month to a bank to pay off Sam's loan per a written request from Sam. Who this be considered alimony?
What is "Yes" payments to a third party and a written request.
Illegal income is nontaxable income, including bribes, kickbacks, stolen property, and money derived from fraud because we can't track it.
What is False
What is the amount of the Unemployment Compensation Exclusion Act for 2020?
What is $10,600
What form is provided to the recipient/taxpayer showing the amount of interest paid for the year?
What is Form 1099-INT
Disability payments received by persons in the service of the U.S. government for injuries suffered in terrorist attacks or military actions are taxable income.
What is "False" it would be excluded from income under the terrorist attack and military actions rule.
If a divorce decree was finalized in 2000, what form does the recipients reports alimony received as income on?
The recipient reports alimony received as income on Schedule 1.
Samantha served on a jury for one week. How would she report jury duty payments?
Jury duty payments are reported on Form 1040, Schedule 1, line 8g.
Which of the following should be included as unemployment compensation?
A. State unemployment insurance benefits
B. Federal income tax withheld
C. Public assistance benefits
D. Sick pay
What is D
When a middleman sends interest income to the actual owner, this is known as what?
What is Nominee distribution
Katie's salary was $27,052. Her employer withheld $4,000 for federal income tax, $1,136 for social security tax, $392 for Medicare tax, and $200 for union dues. What is her gross income?
What is $27,052
Amy lives rent-free in a home owned by her ex-spouse, Henry. Henry must pay the mortgage, real estate taxes, and insurance for the home per their divorce decree. The divorce was final on July 16, 2018. Which of these payments can Henry deduct as alimony?
What is None, Henry still owns the home.
How are union strike benefit payments that are strictly intended as a gift reported?
Union strike benefit payments that are strictly intended as a gift are considered non-taxable.
Taxpayers may choose to have federal income tax withheld from unemployment compensation, what form would they use?
What is Form W-4V
When taxpayers receive non-cash gifts or services for making a deposit or for opening an account in a financial institution, they may report the value as interest. For deposits $5,000 or more, taxpayers must what amount as interest?
What is $20 as interest