44. Ron Rake is a candidate for a master's degree at State University. During 2013, he was granted a fellowship that provided:
Tuition $8,000 Books and supplies 1,500 Room 2,000 Board 1,000 What is the amount Ron may exclude from gross income for 2013? a. $12,500b. $11,500*c. $9,500d. $8,000 45. During 2013, under a qualified written plan for educational assistance, Jake Jenner's employer paid Local University $9,200 on Jake's behalf: $7,500 for tuition, books, supplies, and lab fees and $1,700 for lodging. What is the amount of assistance that Jake should include in his gross income for 2013 if the payment was before May 1, 2013? 46. Sandra Bellows purchased a 15-year annuity for $25,000. Starting at the beginning of the year, Sandra will receive $200 per month. What is the total amount that Sandra can exclude from her gross income from her annuity this year? 47. Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a face value of $40,000. At age 60, Linda decides to collect the face value of the policy. In the year of collection, how much will Linda include in her taxable income? 48. In 2013, Max is 85 years of age and single. He received Social Security payments totaling $14,000 (this includes Medicare premium of $600), dividend and interest income of $21,000, a pension of $30,000
and a taxable IRA benefits of $16,000. What is Max's adjusted gross income for 2013? a. $80,400*b. $78,900c. $78,390d. $67,000 49. Mr. and Mrs. Clark are both 72 years of age, married, filing jointly. They received social security benefits of $7,500 each. Additional income is a taxable pension of $12,000 for Mr. Clark and $6,000 for Mrs. Clark. What is the taxable portion of the social security benefits received by the Clarks? 50. Mr. and Mrs. Garden filed a joint return for 2013. Mr. Garden received $8,000 in Social Security benefits and Mrs. Garden received $4,000. Their income also included $10,000 taxable pension income and interest income of $2,000. What part of their Social Security benefits will be taxable for 2013? *a. $0 b. $6,000 c. $24,000 d. $12,000 51. Cyril, who is 68 years of age, received Social Security benefits of $12,000, wages of $5,000, interest and dividends of $4,000, unemployment compensation of $5,400 and municipal bond interest of $1,500. Calculate Cyril's adjusted gross income. 52. In 2013, Jake and Mary Jacobs, a married couple, have specially modified adjusted gross income $25,000 and $10,000 in social security benefits. If the Jacobs file a joint return, what portion of their social security benefits are included in income for federal income tax purposes?
- Spring '14
- Dividends, Taxation in the United States