Question
.June is a cash basis taxpayer, and is a fashion and makeup consultant in a high fashion company, Curlylocks, Inc.She earned a salary of $60,000.
.June is a cash basis taxpayer, and is a fashion and makeup consultant in a high fashion company, Curlylocks, Inc.She earned a salary of $60,000. She also was provided a disability income protection policy for which Curlylocks 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 Curlylocks paid a $1,000 premium.
Her salary would have been $65,000, but she was paying off her school loan at $5,000/year and Curlylocks agreed to reduce her salary by $5,000 and to pay $5,000/year amount toward her school loan for her.The long-term care insurance policy was provided for all employees, to help to pay for future nursing home costs if needed, the health care and disability insurance were likewise provided for all.While her salary was $60,000, Curlylocks Inc. 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 Curlylocks matched that with a $3,000 contribution of its own money into her 401(k).
What is June's taxable income from Curlylocks this year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started