Tax and Gross Income
TEST 1
Correct Response
Indicate whether each of the items listed below would be included (A) in or excluded (B) from gross income for the 2012 tax year. 1. Alimony | | 2. Lottery winnings | | 3. Life insurance proceeds received upon the death of a family member | | 4. Child support payments | | 5. Reimbursement of hospital expenses from a health insurance plan | | 6. Municipal bond interest | | 7. Unemployment compensation | | 8. Scholarships for tuition and books | | 9. Wages | | 10. Farm income | | 11. Inheritances | |
Which of the following amounts must be included in the gross income of the recipient? a. Welfare payments | | | b. Royalties | | | c. Child support payments | | | d. Gifts | | | e. All of these choices are included in gross income. | | |
Hide Feedback
Which of the following is classified as nontaxable income? a. Welfare payments | | | b. Income from real estate rental property | | | c. Unemployment compensation | | | d. Dividend income | | | e. None of these choices are correct. | |
In the tax law, the definition of gross income is: a. all income from whatever source derived. | | | b. all cash payments received unless excluded by the tax code. | | | c. all income of any kind unless the income is earned illegally. | | | d. all cash payments received for services performed. | |
All of the following amounts are taxable income to the recipient except: a. farm income. | | | b. prizes. | | | c. salaries. | | | d. unemployment compensation. | | | e. gifts. | |
Which of the following is nontaxable income to the recipient for tax purposes? a. Income from tips | | | b. Inheritances | | | c. Salary income | | | d. Income from real estate rental property | | | e. None of these choices are correct. | |
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2012:
Elsie, Elmer's wife, did not own any
Correct Response
Indicate whether each of the items listed below would be included (A) in or excluded (B) from gross income for the 2012 tax year. 1. Alimony | | 2. Lottery winnings | | 3. Life insurance proceeds received upon the death of a family member | | 4. Child support payments | | 5. Reimbursement of hospital expenses from a health insurance plan | | 6. Municipal bond interest | | 7. Unemployment compensation | | 8. Scholarships for tuition and books | | 9. Wages | | 10. Farm income | | 11. Inheritances | |
Which of the following amounts must be included in the gross income of the recipient? a. Welfare payments | | | b. Royalties | | | c. Child support payments | | | d. Gifts | | | e. All of these choices are included in gross income. | | |
Hide Feedback
Which of the following is classified as nontaxable income? a. Welfare payments | | | b. Income from real estate rental property | | | c. Unemployment compensation | | | d. Dividend income | | | e. None of these choices are correct. | |
In the tax law, the definition of gross income is: a. all income from whatever source derived. | | | b. all cash payments received unless excluded by the tax code. | | | c. all income of any kind unless the income is earned illegally. | | | d. all cash payments received for services performed. | |
All of the following amounts are taxable income to the recipient except: a. farm income. | | | b. prizes. | | | c. salaries. | | | d. unemployment compensation. | | | e. gifts. | |
Which of the following is nontaxable income to the recipient for tax purposes? a. Income from tips | | | b. Inheritances | | | c. Salary income | | | d. Income from real estate rental property | | | e. None of these choices are correct. | |
Elmer received the following distributions from Virginiana Mutual Fund for the calendar year 2012:
Elsie, Elmer's wife, did not own any