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Inclusions
Exclusions
Taxable
Interest and Dividends
Fringe Benefits
100
Which of the following will be included in gross income? a) accident insurance proceeds, b) child support payments, c) royalties, d) gifts
What are royalties.
100
Which of the following will be excluded from gross income? a) tips and gratuities, b) hobby income, c) embezzled funds, d) municipal bond interest
What is municipal bond interest.
100
True or False. As long as it is outlined in a divorce decree, any property or cash transferred from one spouse to another is considered alimony.
What is false. All alimony payments must be cash.
100
Ordinary dividends are taxed at special rates. True or false?
What is False. They are taxed at ordinary rates.
100
Group term life insurance is tax-free up to what dollar amount?
What is $50,000.
200
What is the maximum amount of social security benefits that may be included in income?
What is 85%.
200
What is the maximum amount that may be excluded from income for employee achievement awards relating to length of service or safety achievement?
What is $400.
200
How is child support accounted for on the tax return of the payor and the payee?
What is not deductible by the payor and excludable by the payee.
200
Interest from what types of bonds is tax exempt?
What is state or local government bonds.
200
What is the rule for flexible spending accounts when it comes to the fund balance rolling over from one year to another?
What is "use-it-or-lose-it"
300
Non cash property is included in gross income at what amount?
What is fair market value.
300
What is the minimum amount of Social Security Benefits that may be excluded from income?
What is 15% (100% - 85% maximum excluded).
300
Dividends that are taxed at the special rates of 0%, 15% and 20% are called
What is qualifying dividends.
300
This type of dividend/distribution is considered a return of invested capital and is not paid from the earnings and profits of the corporation.
What is a nontaxable distribution.
300
What is the limited percent for qualified employee discounts?
What is 20%
400
Indicate all of the following that would be included in gross income: a) gifts, b) dividends, c) disability benefits, d) rewards, e) accident insurance proceeds, f) passive income, g) partnership income, h) incentive awards
What is b) dividends, d) rewards, f) passive income, g) partnership income, h) incentive awards
400
True/False. If an employer claims a business deduction for group health insurance premiums paid on behalf of his employees, the amount must be included in the employees' gross income.
What is false. Page 18.
400
When are scholarships taxable?
What is when the scholarship is for room and board.
400
When is interest from Series EE bonds taxable?
What is when bonds are redeemed.
400
Name two types of flexible spending accounts
What is dependent care and medical FSAs.
500
What other territory is included in state and local government bond interest exclusion?
What is Puerto Rico.
500
What type of employee achievement award has a maximum exclusion of $1,600?
What is "qualified plan award"?
500
Early payouts of life insurance is typically taxable unless it is for one of what three cases?
What is chronically ill, terminally ill, and transfer to partnership.
500
Both series EE and I bonds can use one of two methods to report the increase in redemption value. Name one of the methods.
What is 1) waiting until bond is cashed or matures, whichever is earliest or 2) report the increase in redemption value in each year.
500
Small non-cash holiday gifts (like a turkey), personal use of the copier, and the use of an employer provided lunch room are all examples of what type of fringe benefit?
What is De Minimis fringe benefit.