CH2_2_Exclusions Examples

Question 1

1. Henry Adams, an unmarried taxpayer, received the following amounts during 2017:

 Interest on savings accounts $1,000
 Interest on municipal bonds used for road construction 500
 Dividends on General Steel common stock 750
 Dividends on life insurance policies (cumulative dividends do not exceed premiums) 200
(원금회수에 해당하는 부분)
Adams should report taxable income, after exclusions, if any, from dividends and interest for 2017 in the total amount of

Answer 1

A. $1,450 B. $1,750 C. $1,950 D. $2,250

B

Question 2

2. During 2017, Ash had the following cash receipts:

 Wages $ 15,000
 Interest income from U.S. Treasury bonds(연방 정부) 350
 Workers’ compensation following a job-related injury 8,500 (산재) 실업

What is the total amount that must be included in gross income on Ash’s 2017 income tax return?

Answer 2

A. $15,000 B. $15,350 C. $23,500 D. $23,850

B

Question 3

3. In 2017, Uriah Stone received the following interest payments:

 Interest of $400 on refund of federal income tax for 2016 (환급)받은 것 다음 년도 과세 소득
 Interest of $300 on award for personal injuries sustained in an automobile accident during 2016 (보상금에 붙은 이자 소득)
 Interest of $1,500 on municipal bonds Interest of $1,000 on United States savings bonds (Series HH) HH Bonds는 Interest taxable

What amount, if any, should Stone report as interest income on his 2017 tax return?

Answer 3

A. $0 B. $700
C. $1,700 D. $3,200

C

Question 4

4. Kareem is a full-time graduate student at the university working toward his Ph.D. in chemistry. In 2017, he received the following scholarship payments from the university:

 $8,000 for tuition and fees
 $5,000 for room and board
 $1,000 for fees, books, supplies, and equipment that are required for the courses at the university
 $7,000 for services as a part-time teaching assistant at the university for which he received a W-2 at the end of the year

Kareem used both the $8,000 and $7,000 payments to pay the total annual tuition of $15,000 at the university. He used the $5,000 payment for room and board. He used the $1,000 to purchase books. What amount received from the university must Kareem include on his 2017 return as taxable income?

Answer 4

A. $13,000 B. $12,000 (5000+7000)C. $6,000 D. $1,000