Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø Proceeds of life insurance policy Ø Amount received by the insured as a return of premium Ø Gift, bequest, or descent Ø Compensation for injuries or sickness Ø Income exempt under treaty Ø Retirement benefits, pensions, gratuities, etc
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Q5:
Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME:
Ø Proceeds of life insurance policy
Ø Amount received by the insured as a return of premium
Ø Gift, bequest, or descent
Ø Compensation for injuries or sickness
Ø Income exempt under treaty
Ø Retirement benefits, pensions, gratuities, etc.
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Solved in 2 steps
- Define each of the given and describe the different EXCLUSIONS FROM GROSS INCOME: Proceeds of life insurance policy Amount received by the insured as a return of premium Gift, bequest, or descent Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc.The following are excluded from gross income, except: a. Proceeds of life insurance policy received by the beneficiary upon death of insured b. Compensation for injuries, sickness, or death c. Amount received by the insured in excess of the premiums paid d. None of the aboveQ1: What is an HSA? What 4 types are mentioned in this chapter and how do they work? What type of deduction is a contribution to an HSA. Q2 What are the special rules that limit health insurance as a deduction for AGI? Please link to IRS rules and define terms used in your answer.
- The following are exclusions from gross income, except Proceeds of life insurance policies. Retirement benefits. Prizes and winnings. Gifts, bequests and devises.Question: 1) Which of the following is an example of mandatory deduction? A) Medical insurance. B) Union subscription C) Life insurance D) FNPF required: please answer this question by choosing the right option. *right/correct answer*Question 6: Which of the following is not a voluntary deduction from gross earnings? Answer: A. O Union dues B. O State disability insurance C. O Payroll deduction IRA D. Cafeteria plan
- 1. Statement 1: If the proceeds of life insurance are held by the insurer under an agreement to pay interest thereon, the interest payments shall be included in gross income. Statement 2: The value of property acquired by gift, bequest, devise or descent, including it fruits and income, shall be excluded from the gross income. a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true 2. Case 1: Avy made a total of P5,000 contributions for SSS, Philhealth, Pag-ibig, and union dues. The P5,000 contributions form part of Avy's gross compensation. However, in computing her taxable compensation, such amount must be excluded. Case 2: Avy suddenly got sick and was hospitalized for 1 month. She received a certain amount of benefit from SSS. Her hospital bills were also reduced by her philhealth benefit. The amount received by Nora from SSS and the reduction in her hospital bills constitute taxable compensation to Nora. a. Both…Which of the following are correct tax-free exchanges? Life insurance for life insurance Life insurance for an annuity An annuity for an annuity An annuity for a life insurance policy 1 only 1, 2 1, 2, 3 1, 2, 3, 4Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
- N1 How life insurance contracts are different from other financial services or products?How does life insurance and non life insurance saves the assets of its pilicy holders? And Cite (3) examples.Question 3: Which of the following is taxable for Social Security tax? Answer: А. O Contributions to a 403(b) plan В. O Contributions to a flexible spending account С. O Contributions to a dependent care flexible spending account D. O Contributions to a cafeteria plan