1. (10-2) Specific inclusions applicable to individuals a. (10-2a) What is the tax treatment of alimony and separate maintenance payments? What is the tax treatment of a transfer of property and child support payments? b. (10-2b) Other inclusions - prizes and awards, unemployment compensation (You don't have to know the exception rules for prizes and awards for the exam.) 2. (10-3) Specific exclusions applicable to individuals a. (10-3a) Gifts and inheritances are excluded from gross income. b. (10-3b) When can a scholarship be excluded from gross income? When is it included in gross income? C. (10-3c) What kind of damages are excluded from gross income? What kind of damages should be included in gross income? (Compensatory vs. punitive damages) d. (10-3f) When can the interest on Series EE U.S. government savings bonds be excluded from gross income? How do you calculate excludable amount? Know the phaseout threshold and range and understand how you calculate excludable amount when it is subject to a phase-out