Zelda has been a widow for three years and files a return as a single taxpayer. Items of income...
Question:
Zelda has been a widow for three years and files a return as a single taxpayer. Items of income received by her in 2014 were as follows:
Interest on insurance dividends left on deposit in bank: 50
Interest on state income tax refund: 25
Gambling winnings: 2,400
Dividends from Mutual Insurance Co. on life-insurance policy: 500
Dividends from X Co. stock received 1-1-14: 825
Total dividends received on Life Insurance Co. do not exceed aggregate of premiums paid to the Co.
a. How much should she include in her 2014 taxable interest income?
b. How much should she report as dividend income for 2014?
c. How much should she include in taxable other income for her gambling winnings?
Taxpayer
The individual or firm who is bound to file tax liability to the government of the concerned country on an annual basis is called a taxpayer. The tax liability paid by the taxpayer can vary based on the slab rates as allocated to them.
Answer and Explanation: 1
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View this answera. Taxable interest: 75 (Both Interests on state income tax refund and insurance dividends left on deposit are taxable).
B Dividend taxable: 875...
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Income Tax: Tax Liability & Deductions
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Chapter 3 / Lesson 5
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
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