Life Insurance and Gross Income - 13797 Words

Chapter 2: Gross Income and Exclusions 1. Noncash items received as income must be included in income at their fair market value. True False 2. Awards, bonuses, and gifts are all included in gross income. True False 3. Disability benefits are generally taxable to the individual receiving the amounts. True False 4. Interest income received by a cash basis taxpayer is generally reported in the tax year it is received. True False 5. Interest on U.S. Treasury Bonds is not taxable. True False 6. Taxpayers must report interest income on Series EE savings bonds as the interest accrues. True False 7. A gift received for opening a bank account is not taxable income to the recipient. True†¦show more content†¦True False 30. A no-additional-cost service includes only those services in the major line of business in which the employee is employed. True False 31. In some cases, Social Security benefits may be partially taxable. True False 32. Which of the following amounts must be included in the gross income of the recipient? A. Child support payments B. Welfare payments C. Gifts D. Royalties E. All of the above are included in gross income 33. All of the following amounts must be included in gross income, except: A. Gambling winnings B. Partnership income C. Accident insurance proceeds D. Dividends E. Jury duty fees 34. All of the following amounts are excluded from gross income, except: A. Tips and gratuities B. Child support payments C. Scholarship grants for tuition D. Gifts E. Veterans benefits 35. Which of the following is generally excluded from gross income? A. Dividends B. Rewards C. Disability benefits D. Passive income E. None of the above 36. Which of the following is excluded from gross income? A. Prizes B. Scholarships for tuition C. Hobby income D. Rental income E. All of the above are included in gross income 37. Which of the following is classified as nontaxable income? A. Unemployment compensation B. Dividend income C. Income from real estate rental property D. WelfareShow MoreRelatedFamily Budget599 Words   |  3 Pageshealthy with your share of colds and flu. †¢ You do not have health insurance provided by your employer †¢ Your gross annual income is $19,500. Household #2 †¢ You are single (no alimony/child support), and work outside the home. †¢ You have 2 children, a boy 7 and a girl 3. †¢ You are all generally healthy with your share of colds and flu. †¢ You do not have health insurance provided by your employer †¢ Your gross annual income is $21,500. Household #3 †¢ You are single (no alimony/childRead MoreGift Tax Essay1615 Words   |  7 Pagesincluded in Decedent’s gross estate? Decedent made a transfer within 3 years of death. Under Section 2035(a), nothing is included in Decedent’s gross estate, because it’s a cash gift. However, under Section 2035(b), the amount of the gross estate shall be increased by the amount of any tax paid on any gift made by the decedent during the 3-year period ending on the date of the decedent’s death. So the amount of gift tax of this gift the decedent paid is included in his gross estate. (b) What isRead MoreFederal Taxation Test Paper1123 Words   |  5 Pages The election is made by the executor. b. Can be elected even though no estate tax return (i.e., Form 706) has to be filed. c. Can be elected only if it reduces the amount of the gross estate or reduces the estate tax liability. d. Its election does not affect the income tax basis of property included in the gross estate. e. None of the above. __C__ 6. In which, if any, of the following independent situations has Jean made a gift? a. Jean gives her 19-year old son $20,000 toRead MoreEssay about Estate Planning - Case Study1429 Words   |  6 Pagessuggest different appropriate ways to reach your personal and financial objectives. Financial strengths: Mary, you own 80% interest in closely held company (Crescent City Publications). Income statement shows that your salary is about $120,000 a year. Including your husband’s income, investment income and rental income I can conclude you have a high net worth. Your investment portfolio seems to be very strong. Investments in different stock, bonds and funds ensures diversification which leads to resultRead MoreTax and Gross Income1511 Words   |  7 Pageswould 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 followingRead MoreThe Importance of Tax in an Individuals Life1694 Words   |  7 Pagestaxing of the same income twice. This type of taxation typically results from a C corporation paying tax on its taxable income and shareholders paying income tax on any dividends received from the C Corporation. The impact of double taxation of C corporations has been substantially reduced by the fact that since 2003, dividends are taxed at a maximum rate of 15%. The most well-known example of double taxation in the U.S. is the income tax levied once on corporate income and then againRead MoreDealing With The Insurance Changes1106 Words   |  5 PagesDealing with the Insurance Changes Your prices for insurance coverage could be rising or falling, depending on your age, health and other factors. Smokers pay about 50% more for insurance than nonsmokers, so many families can realize savings by quitting the habit. The Employer and Individual Mandates for coverage affect about 15% of Americans who don t have health insurance. If you qualify for a subsidy, you need to report your Premium Tax Credit on your taxes. Gift of the MAGI Tax credits basedRead MoreTax Memo: Dependency Exemptions and Tax Planning1372 Words   |  6 Pagestaxed. The Carters equally spent $8,000 between them for cloths, transportation expenses, and a vacation. They invested the remaining $11,000 in tax-exempt securities. Janet Baker paid $1,000 on her mother’s dental work and also paid her father’s life insurance premiums of $1,200. Darin, the Baker’s 18-year old son is not a full-time student but earned $14,000 from a pool-cleaning business. He placed the earnings into a savings account for future college expenses. The Baker’s daughter Andrea is not employedRead MoreSwitzerland Case Study976 Words   |  4 Pageshealth care system. It has a regulated healthcare market system composed of private insurance companies, health maintenance organizations and preferred provider organizations. Tricare is health insurance for military, spouses,dependents and beneficiaries.(Cherry, B, (2014)) Government funded program s provide health coverage for the unemployed, elderly, low income and retired. â€Å"100 million Americans receive health insurance from government funded programs.† (Centers for Medicare and Medicaid, (n.d)) GovernmentRead MoreSwitzerland Health Care System993 Words   |  4 Pageshealth care system. It has a regulated healthcare market system composed of private insurance companies, health maintenance organizations and preferred provider organizations. Tricare is health insurance for military, spouses,dependents and beneficiaries.(Cherry, B, (2014)) Government funded programs provide health coverage for the unemployed, elderly, low income and retired. â€Å"100 million Americans receive health insurance from government funded programs.† (Centers for Medicare and Medicaid, (n.d)) Government