June is a cash basis taxpayer and a fashion and makeup consultant in a high fashion company, Goldielocks, Inc. She earned a salary of $60,000.
June is a cash basis taxpayer and a fashion and makeup consultant in a high fashion company, Goldielocks, Inc. She earned a salary of $60,000. She also was provided a disability income protection policy for which Goldielocks Inc. paid a %1,500 premium for June's insurance. The company also provided health insurance for her which cost the company $15,000 and long term care insurance for her which cost the company $1,000 premium.
Her salary would have been $65,000 but she was paying off her student loan at $5,000/year and Goldielocks agreed to reduce her salary by $5000 and pay her loan on her behalf. The long term care insurance was provided for all the employees as well as all the other insurances. while her salary was $6,000, Goldielocks had a 401(k) plan and June voluntarily put $3,000 of her $60,000 salary, 5% of it into her 401 (k). Her employer matches that with $3000 contribution.
What is June's taxable income from Goldielocks this year?
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