1) XYZ Corp purchased group term life insurance for all of its employees. The employer pays all of the premiums which are equal to two times (2x) the employees salary.

Scott, age 52, earns $37,500 annual salary. How much must Scott recognize in income?

2) Don and Carol are married and filed a joint return. During the year they received the following :

Wages.. $25,000

Social Security Benefits. 12,000

Tax Exempt interest income... 10,000

Modified adjusted gross income 35,000

How much of the social security benefits are included in income?