TAX- GROSS INCOME- OTHER INCLUSIONS

Question 1

Divorces finalized after 2018, how is that taxed?

Answer 1

Not taxed, not deductible

Question 2

Divorces finalized before 2019, how is that taxed?

Answer 2

Taxed to the recipient

The payroll is granted a deduction (for AGI)

Question 3

How is child support taxed?

Answer 3

Not taxed, not deductible

Question 4

To qualify for alimony, how does the payment need to be made?

Answer 4

Cash or via expense payment (such as a mortgage company)

Question 5

Does the payment need to be contingent upon the life of the recipient?

Answer 5

True- Upon the recipient

Question 6

To qualify for alimony, does the agreement need to be in writing?

Answer 6

Yes

Question 7

Payments for Physical Injury and Physical Sickness, how is this taxed?

Answer 7

Excluded from income (this includes workers comp)

Question 8

Payments from unemployment comp, is this taxed?

Answer 8

Yes, they are taxed

Question 9

Benefits from accident and health policies are generally excluded from income?

Answer 9

True

Question 10

Benefits from disability are excluded unless:

Answer 10

Unless premiums were paid by employer and not taxed to employee

Question 11

Medical insurance premiums paid by the employer are excluded?

Answer 11

True

Question 12

Damages received from emotional distress, employment or age discrimination, or injury to reputation, must NOT be included in income?

Answer 12

False- it needs to be included

Question 13

Punitive damages in general must be included in income?

Answer 13

True

Question 14

If a employee performs jury duties and returns the check to the employer, what needs to happen?

Answer 14

The employee can deduct the jury duty check (for AGI) to offset the income