1040 Preparation and Planning 2: Gross Income (2015 Edition) (00677801, 2015 Edition)

The second course in the series covers gross income from all sources, as well as exclusions and inclusions to gross income. Topics examined include how to report wages and benefits, including all forms of compensation, as well as which benefits are taxable and which are excludable from income; total interest from banks, savings and loan associations, credit unions, savings bonds, and tax refunds; and miscellaneous exclusions and inclusions not covered elsewhere, as well as how to recognize excludable and includable types of income. 

final exam score: 

final exam status: 

80%

Question 6

Incorrect

Sam Sharp takes a $50,000 distribution from his qualified retirement plan. It is not a required minimum distribution. Which of the following is not true?

 He can roll over the entire $50,000 directly and not have any income tax withheld.

 If he has income tax withheld and then decides to roll over the full amount, the IRS will contribute the amount previously withheld into the rollover account.

 If he does not roll over any of the $50,000, he will have $10,000 of income tax withheld.

 (You Answered) He does not have to have withholding if the $50,000 is one of a series of substantially equal payments made over a specified period of 15 years. 

Question 11

Incorrect

Harry Henson, a computer programmer, takes a job-related graduate course for $6,000, which his employer pays for and which qualifies as a working-condition fringe benefit. He may:

 (You Answered) Exclude $5,250

 Exclude all of this benefit

 Exclude nothing; he is fully taxable on this benefit

 Exclude a portion of $6,000 depending on his income. 

Question 14

Incorrect

Which of the following items might be considered as deductible alimony?

 (You Answered) Child support payments

 Rent paid for the benefit of the recipient-spouse

 Noncash payments

 A property settlement 

Question 16

Incorrect

All of the following are requirements for a payment to be considered alimony except:

 Payments are in cash.

 Payments can be in property.

 Payments are required by a divorce or separation instrument.

 (You Answered) Payments are not required after death of the recipient spouse.