Question
During 2015 Chad received a check for $775 from the state of North Carolina. This was a refund of some of the state income taxes
During 2015 Chad received a check for $775 from the state of North Carolina. This was a refund of some of the state income taxes that were withheld from Chad's paychecks during 2014.
Chad had itemized deductions on his 2014 Federal income tax return, including deducting $2,575 of state income taxes paid.
Chad must report the $775 state income tax refund he received as taxable income on his 2015 Federal tax return.
True
False
Chad won a car valued at $25,000 when he appeared on "The Price is Right" game show. He didn't need the car (nor did he especially like the car) so three weeks later he donated it to the local Red Cross chapter.
Nonetheless, Chad is required to report the value of the car as taxable income when filing his Federal return.
True
False
Chad received a tuition-only scholarship from his local community college worth $5,000. He must pay income tax on the $5,000 he received.
True
False
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