Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 ) A taxpayer is a US citizen who lived and worked in France during the entire tax year. All of their income was earned
A taxpayer is a US citizen who lived and worked in France during the entire tax year. All of their income was earned outside of the US and consists of wages, capital gains, dividends, and interest. Is the following statement true about reported income in this situation?
a None of the income needs to be reported in the US Since the taxpayer spend the tax year overseas, there is no requirement to report any of the foreign income
b Generally, all of the income needs to be reported in the US US residents are required to report worldwide income
c A taxpayer could claim the foreign earned income exclusion on wages only
A taxpayer has the following sources of income other than wages this year: Oil royalties of $K Rent of $K Nonemployee compensation of $K a $K manufacturing incentive payment, and a $K winnings from a sweepstake. Is this following statement true?
a The $K nonemployee compensation and the $K manufacturing incentive payment would be the only sources income
b Oil royalties are not considered selfemployment income
c All sources of income listed would be considered miscellaneous income and added to the tax return. None of these sources of income would be subject to selfemployment tax
d Oil royalties are considered selfemployment income
e The $K nonemployment compensation would be the only source of selfemployment income
Is the tax treatment in the scenario accurate for tax year
a The only income earned during the tax year was selfemployment income in the amount of $ There are no deductions associated with this income. The taxpayer must fill out a schedule C
b The taxpayer was required to repay unemployment compensation that was received in a prior year. This may be a miscellaneous deduction
c The taxpayer served on jury duty for two weeks and collected $; this should be reported as Misc income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started