USA TAX

for each item listed, you must determine the taxable amount to the taxpayer. If the item is not taxable, then write zero for your answer. For each item, identify the tax rule and explain the reasoning for your answer.

For each item listed, determine the taxable amount to the taxpayer. If the item is not taxable, then write zero for your answer. For each item, identify the tax rule and explain the reasoning for your answer. Tax Year 5 2019 Scenario Amount Tax Rule & Explanation 1 A car received with a far market value of $4,000 received as payment. 2 Employer reimbursement of college tuition expenses in the amount of $7,000. 7 3 Interest received on state and local goverment bonds in the amount of $600. 8 Interest received from IRS for late payment tax refund in the amount of $25. 9 10 5 Scholarhip of $10,000 received for degree-seeking student and used $7,000 for tution, $1,000 for books, and $2,000 for room an board. Workers' compensation payment of $2,000 for a work related injury 11 7 Unemployment benefits of $5,000 12 13 State income tax refund of $200 from prior year's return (standard deduction was used in the prior year) 9 TV won in a rallie that is worth $350. 14 10 Child support payments totaling $6,000. 15 For each item listed, determine the taxable amount to the taxpayer. If the item is not taxable, then write zero for your answer. For each item, identify the tax rule and explain the reasoning for your answer. Tax Year 5 2019 Scenario Amount Tax Rule & Explanation 1 A car received with a far market value of $4,000 received as payment. 2 Employer reimbursement of college tuition expenses in the amount of $7,000. 7 3 Interest received on state and local goverment bonds in the amount of $600. 8 Interest received from IRS for late payment tax refund in the amount of $25. 9 10 5 Scholarhip of $10,000 received for degree-seeking student and used $7,000 for tution, $1,000 for books, and $2,000 for room an board. Workers' compensation payment of $2,000 for a work related injury 11 7 Unemployment benefits of $5,000 12 13 State income tax refund of $200 from prior year's return (standard deduction was used in the prior year) 9 TV won in a rallie that is worth $350. 14 10 Child support payments totaling $6,000. 15