R1 M2 Gross Income Part I Flashcards

1
Q

Where are wages reported in your W2 Form?

A

You would take W2 Form in box 1 and enter it in Form 1040.

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2
Q

Terry’s 17 year old who worked in a restaurant. Would his income be added to his parent Form 1040 as a dependent?

A

No his form would not be used in his parent 1040 Form

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3
Q

What form does interest income come from?

A

Form 1099 INT and consolidated Form 1099

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4
Q

In form 1099 INT What boxes do you use?

A

BOX 1 is included and Box 3 is also used it will be exempt if the EE saving bonds was used for education purposes.

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5
Q

Is state and local interest taxable?

A

No, unless they are itemized.

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6
Q

In Form 1099 consolidated what Boxes do you use for taxable interest?

A

BOX 1

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7
Q

Taxable Dividend Income in the consolidated Form 1099 what would you use?

A

Qualified Dividend income or ordinary dividend in 1 a . The qualified dividend is part of ordinary dividend.

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8
Q

What form do you use for Gambling? Is it taxable?

A

Form w2(g) . Yes

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9
Q

Do you deduct Gambling winning with losses?

A

Yes, if you used an itemized deduction. If not you would just use the Gambling wining in Box 1.

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10
Q

Interest received on state and local government bond of $500.00. Are they exempt from federal Tax?

A

Yes. Municipal bond interest is exempt from federal tax.

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11
Q
A
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