Chapter 5 Problems

# Chapter 5 Problems - Multiple from table 2, Age 61 = 23.3...

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Chapter 5 Problems 20, 21, 22, 23, 24, 25, 30, 35, 36, 37, 38, 41 EXPLAIN YOUR ANSWERS Initial Submission Due Oct 4 20) \$27,000. Only the disability income can be excluded to the gross income. 21) \$9,000 from the worker’s compensation 22) -\$6,500. The private pension, social security, and interest on tax exempt are excluded to the gross income. 23) No he does not 24) He should not include any amount from his social security payments. His taxable income is \$22,000 25) He should not include any payment to the insurance in his gross income. 30) Annual annuity payments: 125* 12 = \$1,500

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Unformatted text preview: Multiple from table 2, Age 61 = 23.3 Expected return: 1,500* 23.3 = \$ 34,950 Exclusion ratio: 22,050/34,950 = 63% Amount of pension for 2011: 63%* 1,500 = \$946.35 35) She should include \$4,000 interest in her gross income 36) She should exclude punitive damages from her gross income 37) He should not include the \$24,000 in gross income, and not include the \$8,000 legal fees since it was in relation to the case. 38) Both the compensatory damages and punitive damages are not included in her gross income. 41) He should include the \$30,000 in gross income....
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## This note was uploaded on 10/19/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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Chapter 5 Problems - Multiple from table 2, Age 61 = 23.3...

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