Question
1a. Melissa is a 35 year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents, so only
1a. Melissa is a 35 year-old single taxpayer with adjusted gross income of $49,600. She uses the standard deduction and has no dependents, so only uses one personal exemption. (https://www.irs.gov/pub/irs-pdf/i1040tt.pdf)
a) Calculate Melissa's tax liability.
b) Using the 2016 tax tables, what is Melissa's tax liability?
1b. In the tax law, the definition of gross income is:
a. All cash payments received unless excluded by the tax code | ||
b. | All cash payments received for services performed | |
c. All income from whatever source derived | ||
d. All income of any kind unless the income is earned illegally |
Laura and Leon were granted a divorce in 2011. In accordance with the decree, Leon made the following payments to Laura in 2016: Child support payments contingent on the age of the child: $6,000 Annual cash payments, OTHER than child support, specified as alimony in the divorce agreement: $4,000 How much should Laura include in her 2016 taxable income as alimony?
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