R1 M2 Gross Income Part I

Question 1

Where are wages reported in your W2 Form?

Answer 1

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

Question 2

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

Answer 2

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

Question 3

What form does interest income come from?

Answer 3

Form 1099 INT and consolidated Form 1099

Question 4

In form 1099 INT What boxes do you use?

Answer 4

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

Question 5

Is state and local interest taxable?

Answer 5

No, unless they are itemized.

Question 6

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

Answer 6

BOX 1

Question 7

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

Answer 7

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

Question 8

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

Answer 8

Form w2(g) . Yes

Question 9

Do you deduct Gambling winning with losses?

Answer 9

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

Question 10

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

Answer 10

Yes. Municipal bond interest is exempt from federal tax.