Answer all 5 questions correctly

1. Tom was injured in an automobile accident and received $30,000 for his physical injury, $5,000 in punitive damages, $6,000 lost wages and $3,000 in workers compensation. His wife Tia received $ 10,000 for his loss of his services. As a result of the award, the amount Tom must include in gross income is?

2. Jack and Jill have 4 children ages 2, 13, 15, and 17 their adjusted gross income was $200,000. What is the amount of the child tax credit on the couple's income tax return in 2021?

3. Jiggs is actively engaged in the oil business. During the year 2021 he made several trips to inspect oil wells. As a result of his business trips he incurred the following expenses.

Transportation costs $4,000, Hotels $1,000, Meals $600, Entertainment $500, Consulting fees $600, and lobbying fees $1,800.

What amount can Jiggs, claim as deductible expenses?

4. This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a -gold watch worth $400 and a $2,600 cash bonus. What amount must Ed include in his gross income?

5. Jimmy, is a freelance writer who reports income on a cash basis:

Cash received for articles $50,000

TV Game show winnings 2,700

Loss on sale of stock 800

Appreciation of investment property 1,000

NYC Bond interest 200

What is Jimmy Adjusted Gross income?