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Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate

Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.

Item

$ Included as Gross Income

$ Excluded from Gross Income

Earned $45,000 of gross wages from an employer.

Received a gift from a grandparent of $10,000 cash.

Received a $5,000 signing bonus from an employer.

Received child support in the amount of $12,000.

Employer-paid health insurance premiums amounted to $15,000 for an employee.

Employee chose a $10,000 per year cash option from a cafeteria plan offered by the employer.

Received $1,800 of interest in municipal bonds from the State of Louisiana.

Received $500 in qualified dividends from mutual fund holdings.

Received a directed sum of $3,000 from a parent’s business customer. The money was earned by the parent but the customer paid the student directly to help pay for college. The money was no longer owed to the parent. What, if any, goes on the receiver’s return?

Received $120,000 of life insurance proceeds installments during the year. The face value of the policy was $115,000.

Received a watch from an employer for 10 years of service at a banquet. The watch cost $350.

Received a lump sum payment of $300,000 for an injury occurring because of a car accident. Compensatory and medical damages paid amounted to $140,000. The difference was considered punitive.

Received a $1,000 per month housing allowance for managing an apartment building. The manager who received the allowance worked on the premises of the building during the day but lived and spent nights at his parents’ house. Manager was not required to live on the premises of the apartment building.

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