Wages/Unemployment Compensation
Earned income includes:
• Salaries, wages, and tips
• Net earnings from self-employment
• Gross income received as a statutory employee
Hilda Gold received educational assistance to help with the costs of her tuition and books for undergraduate studies in 2025. This is a Scholarship or Fellowship?
Scholarship
Vernon Gold received the following interest income:
$620 earned on a bond from the Portland Toll Road Commission
Tax-exempt Interest
Recovered income is taxable to the extent the taxpayer:
a tax benefit in an earlier year.
Taxable income can't be:
below zero.
When the cost of premiums for life insurance must be included in income?
When the employer provided more than $50,000 of coverage.
Scholarships and fellowships are excluded from income when:
• The student is a degree candidate at an eligible educational institution.
• The student uses the amount received to pay qualified expenses.
Bond interest is tax-exempt when issued by:
The District of Columbia Toll Road Commission.
Taxpayers list the taxable portion of a state or local income tax refund on:
Schedule 1, line 1.
Taxpayers use the Qualified Dividends and Capital Gain Tax Worksheet if any of the following apply:
• Qualified dividends reported on Form 1040 line 3a
• Not filing Schedule D and there is reported capital gain distributions on, line 7b
• Filing Schedule D and both line 15 and line 16 are more than $0
Were we report unemployment compensation payments received for tax year 2025?
Schedule 1, line 7, unemployment compensation
Inheritances are:
Not Taxable
When we report the interest on bonds?
When the interest is paid
Taxpayers will complete one of two worksheets to compute the taxable portion of the refund:
State and Local Income Tax Refund Worksheet
Worksheet 2, Recoveries of Itemized Deductions
The payer reports the dollar amount paid as Alimony on:
Schedule 1, line 19a.
What is the amount of the Unemployment Compensation Exclusion Act for 2020?
$10,200
Jury duty payments are reported on:
Form 1040, Schedule 1, line 8h
When a middleman sends interest income to the actual owner, this is known as:
Nominee distribution.
If the taxpayer did not itemize or claim a deduction for state or local taxes paid in the prior year, what would the taxpayer do?
The taxpayer would not report as income any refunds from those taxes.
Ms.🤶is in the process of divorce from her 2nd husband Rudolf and is asking for Alimony. She already receives payments as Alimony from her 1st husband Santa and does not know if this request of payment is also considered Alimony.
Which payment is considered taxable?
Payments from Santa
When would unemployment be treated as wages?
If there is a labor contract that assures full year work.
Union strike benefit payments that are strictly intended as a gift are:
Non-Taxable
Which form is used to figure the interest exclusion when you redeem qualified savings bonds and pay qualified higher educational expenses during the same year?
Form 8815
How much of the state income tax refund must be included in income based on the following information: 250 state income tax refund, 500 deduction on Schedule A for state income tax, general sales tax deduction would have been 850.
$250.00
Donna 2011 legal separation agreement requires her ex-spouse to pay her $700 per month in Alimony. The payments will be reduced by $200 per month once their daughter, currently age 14, either reaches age 18 or marries.
What is the amount Donna can claim as Alimony for a full year preceding marriage or age 18?
$6,000