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History Bookmarks Window Help a v2.cengagenow.co Google Apple Facebook Youtube Instagram Handshake bCourse Udemy Foothill O CengageNOWv2 | Online teaching and learning resource fro... Cenga Calculator Which of the following is not taxable income? a. Dividends b. Interest C. Royalties d. Welfare benefits e. Income from relief of debt

Solution

Which of the following is not taxable income? Ans. Welfare benefits Explanation: child support, life insurance policy proceeds, inheritances, workers compensaton, welfare benefits, compensation on physical injury, education scholarship, retirement account income etc. is part of gross income but not identifiable as taxable income. Laura and Leon were granted a divorce in 2008, In accordance with the decree, Leon made the Following payments to Laura in 2017 Child support payments $6,000 Indefinite periodic payments $4,000 How much of the payments can he deduct as alimony in 2017? Ans. c $4,000 Explanation: Child support payments are not deductible so only $4000 can be deducted as alimony. Sally is a high school math teacher. In 2017, she purchases $400 worth of supplies related to her teaching. Her spouse, Gabe, is a high school math teacher and spends $100 in education supplies for his classes. If married filing jointly, what is the 2017 for-AGI educator\'s expenses deduction Ans. $350 Explanation: Educators expense deduction is limited to $250 each person if Married filing jointly Its $500 but limited to $250 each person. Limited Sally $250 Gabe $100 Total allowed $350