1. The definition of gross income in the tax law is:

a. All items specifically listed as income in the tax law

b. All cash payments received for goods provided and services performed

c. All income from whatever source derived

d. All income from whatever source derived, unless the income is earned illegally

2. Which of the following is excluded from gross income for income tax purposes in 2022?

a. Commissions

b. Severance pay

c. Qualified dividends

d. Unemployment compensation.

e. Life insurance proceeds

3. In 2022, all of the following items are gross income to the taxpayer receiving them, except:

a. Damages for personal injury

b. Hobby income

c. Embezzled funds

d. Gains from illegal activities

e. Gambling winnings

4. In 2022, which of the following types of income is excluded from gross income?

a. Unemployment compensation

b. Income earned illegally

c. Dividends from foreign corporations

d. Corporate bond interest income

e. Scholarship used for tuition

5. Which of the following is included in gross income?

a. Loans

b. Scholarships for room and board

c. Gifts

d. Health insurance proceeds

e. Child support payments received

6. Annual wages subject to income tax are reported:

a. On Form W-4

b. On Form W-2 in Box 1

c. On Form W-2 in Boxes 1, 3, and 5

d. On Form 1099-W in Box 1

7. The classification of a worker as an employee or an independent contractor is:

a. Made by the employer

b. Made by the employee

c. Based on a negotiation between the employer and employee,

d. Based on a set of common law factors related to control and independence

8. Which of the following is likely to indicate classification of a worker as an employee:

a. The worker must provide their own tools and equipment.

b. The worker can provide services at a location they choose.

c. The worker receives benefits like health care.

d. The worker makes their services available to the general public.

9. State income tax withholding is reported on:

a. Form W-2S

b. Form W-4

c. Each state has a unique reporting form

d. Form W-2 on Box 17

10. In 2022, Jonahs employer pays $8,700 for health insurance premiums for Jonah, Jonahs spouse, and Jonahs three dependent children. Jonah has $100 per monthwithheld from his pay toward the cost as well. Jonahs employer covers the entirecost ($1,400 for the year) of Jonahs dental plan for his household. How much gross income will Jonah report from his employers payments for his health and dental plan premiums?

a. $0

b. $1,400

c. $8,900

d. $10,100

11. Taylors 2022 health insurance premiums of $7,800 are paid by her employer. During2022, Taylor requires surgery on her vocal chords. The cost of the surgery is $10,000and Taylors insurance covers all but $500, which Taylor pays herself. How much isTaylors gross income from these health-related transactions?

a. $0

b. $7,800

c. $9,500

d. $10,000

e. $17,800

12. George works at the Springfield Nuclear Plant as a nuclear technician. The plant is located 15 miles from the town of Springfield. George likes to eat his lunch at the plants cafeteria because he must be available for nuclear emergencies during his shift. No other eating establishments are located near the plant. George estimated the value of the meals he was provided during the current year as $1,300. He estimated the cost for him to have prepared those lunches for himself as about $560. The cost of the meals to the power company was $470. How much income does Georgene recognize from the meals?

a. $1,300

b. $560

c. $470

d. $830 ($1,300 2 $470)e. None of the above

13. In which of the following situations is the value of employer-provided meals included in gross income?

a. An employee who is not required to eat at the company cafeteria but often does. The majority of other employees at this location are required to eat in the cafeteria for business reasons.

b. An employee of a quick-service restaurant who eats a meal at the end of his work shift each day.

c. An employee eats two to three doughnuts on Doughnut Day (the third Friday of each month) while most employees eat one or none.

d. An employee who occasionally receives a free meal when working overtime

e. None of these meals are included in gross income.