- Taxpayer has just accepted a job as chief counselor at a large daycare camp operated by a local nonprofit tax-exempt organization. To encourage Taxpayer to spend as much time as possible on the camp premises, Taxpayer will receive a fixed salary and free meals on the premises while on duty. In addition, Taxpayer is offered a choice of a monetary fixed monthly housing allowance or free rent if Taxpayer opts to reside in a cabin on-site. Taxpayer choses to live in the cabin. What amount must Taxpayer report as gross income on Form 1040 for the year? A. Salary, meals while on duty, and rent value of the cabin B. Salary and meals while on duty only C. Salary only D. Salary and rent value of the cabin only E. None of the above answers

- Taxpayer has just accepted a job as chief counselor at a large daycare camp operated by a local nonprofit tax-exempt organization. To encourage Taxpayer to spend as much time as possible on the camp premises, Taxpayer will receive a fixed salary and free meals on the premises while on duty. In addition, Taxpayer is offered a choice of a monetary fixed monthly housing allowance or free rent if Taxpayer opts to reside in a cabin on-site. Taxpayer choses to live in the cabin. What amount must Taxpayer report as gross income on Form 1040 for the year? A. Salary, meals while on duty, and rent value of the cabin B. Salary and meals while on duty only C. Salary only D. Salary and rent value of the cabin only E. None of the above answers

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 42P

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Patricia, an unmarried taxpayer who is head of household, has adjusted gross income of \$42 ,800 and incurs $4,000 of child care expenses for part-time care of her 8 year old son, Joshua. Patricia can shelter up to $5,000 (or her expenses if less) in an employer provided childcare reimbursement program or take the Child and Dependent Care Credit. If Patricia elects to participate in the employer provided program and has her expenses deducted from her reported salary instead of using the Child and Dependent Care Credit, what is the amount of her tax savings from choosing this option? Assume the 2020 tax year. DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!!
For each of the following situations, indicate how much the taxpayer is required to include in gross income: Note: Leave no answer blank. Enter zero if applicable. Required: a. Steve was awarded a $9,150 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees. b. Hal was awarded a $17,300 scholarship to attend State Hotel School. All scholarship students must work 30 hours per week at the School residency during the term. Complete this question by entering your answers in the tabs below. Required A Required B Steve was awarded a $9,150 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees. Amount to be included in gross income Required B >
Jangyoun is a married taxpayer with a dependant 4-year-old daughter. His employer offers a flexible spending account under which he can choose to receive cash or, alternatively, choose from certain fringe benefits. These benefits include health insurance that costs $9,000 and child care that costs $2,600. Assume Jangyoun is in the 28% tax bracket. A) How much income tax will Jangyoun save if he chooses to participate in the employer's health insurance plan? Assume that he does not have sufficient medical expenses to itemize his deductions. B) would you recommend that Jangyoun participate in the employer's health insurance plan if his wife's employer already provides comparable health insurance coverage for the family? C) Would you recommend that Jangyoun participate in the employer-provided child care option if he has the alternative option of claiming a child care credit of $480?
Determine the total amount that will qualify for itemized deduction by the taxpayer. Reginald’s long-time neighbor (and poker-playing buddy) Regina lost her job early in the year due to excessive late arrivals at work. To assist Regina and her family (an unemployed husband and six pre-teen children), Reginald did what he could to keep his friends from either starving or declaring bankruptcy until the (un) employment situation was cured. First, he paid their overdue state income taxes of $777, then he gave then $400 cash each month starting in June. When their electric washer “died” from overuse, he bought them a refurbished one, spending $555 on it. Finally, he covered their December mortgage payment (principal of $433 and interest of $167) so that they had some cash to buy Christmas presents for the children
For each of the following situations, indicate how much the taxpayer is required to include in gross income: Note: Leave no answer blank. Enter zero if applicable. Required: a. Steve was awarded a $7,050 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees. b. Hal was awarded a $23,800 scholarship to attend State Hotel School. All scholarship students must work 20 hours per week at the School residency during the term.
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