For answers submitted, I live in Albany, NY. I must follow NYS guidelines for all questions. If you have any questions, please do not hesitate to contact me.

20. By law, Darryl is required to make monthly alimony and child support payments of $2,000 and $3,000, respectively. During the year, Darryl pays a total of $50,000 to his ex-wife. What amount must the ex-wife include in gross income?

21. Without regard to any AGI limitation, alimony is? A) Deductible for the spouse paying it; taxable for the spouse receiving it B) Not deductible for the spouse paying it; taxable for the spouse receiving it C) Not deductible for the spouse paying it; not taxable for the spouse receiving it D) Deductible for the spouse paying it; not taxable for the spouse receiving it

22. Employees are required to report the amount of tips they receive to their employer when their tips for the month exceed?

23. A single taxpayer with modified AGI of $227,000 has $31,500 of net investment income. The taxpayer's net investment income (NII) tax is?

24. Which of the following items is taxable to the employee receiving them? List all that apply. A) Sales commissions B) Holiday bonus of $2,000 C) Sick pay D) Vacation pay E) Wages

25. Over the years, Kevin has made nondeductible contributions to his traditional IRA totaling $50,000. The ending balance of his IRA at the end of the year is $70,000. During the year, Kevin withdrew $10,000 from his IRA, which is not subject to the 10% penalty. How much of his withdrawal is taxable?

26. Joan's taxable income falls in the 32% tax bracket. Included in her taxable income is $20,000 of ordinary dividends, of which $15,000 are qualified dividends. The amount of tax Joan will pay on her qualified dividends is?

27. Social Security benefits received during the year? A) Are fully taxable for all recipients B) Are tax-free for all recipients C) May be fully taxable for some recipients D) May be partially taxable for some recipients

28. Joyce is self-employed. She uses the calendar year and the accrual method of accounting. What amount must Joyce include in gross income for December? She reports the following activities for December: Received $10,000 from clients for services to be performed next year Received $30,000 for services performed in December Records $15,000 in accounts receivable for work performed in December Received $2,000 for services performed in November