TX Set 6 Employment Income

Question 1

Taxation year for an individual

Answer 1

Calendar year

Question 2

How is employment income taxed? Exception for bonuses?

Answer 2

Cash basis, on year it is received. If bonus paid 3 years after declaration, then include in year declared.

Question 3

Are allowances taxable? Exceptions?

Answer 3

Generally yes. Exceptions for motor vehicle and travel allowances IF reasonable.

Question 4

Gifts and awards - taxable? Any exceptions?

Answer 4

Yes, if over $500. Also, if not related to length of service.

Question 5

Employer health care premiums for private and public plans - taxable?

Answer 5

Public - yes. Private - no.

Question 6

Employer premiums for life insurance plans - taxable benefit?

Answer 6

Only if employee is beneficiary.

Question 7

Housing loss when moving

Answer 7

1/2 of any excess over $15k is taxable

Question 8

Commissioned employee claims

Answer 8

Either 8.1.h or 8.1.f - not both. Limited to commission income.