Question
Which of the following is not a deductible expense? a.Real estate taxes b.Interest on student loans c.Personal property taxes d.Unreimbursed employee business expenses e.Charitable contributions
Which of the following is not a deductible expense?
a.Real estate taxes
b.Interest on student loans
c.Personal property taxes
d.Unreimbursed employee business expenses
e.Charitable contributions
Raoul is a widow, age 71, who lives with his son and is his dependent. During 2020, Raoul's sources of income are interest income of $725 from his bank savings account and interest income of $400 from tax-exempt municipal bonds. What is Raoul's gross income, and must he file a tax return?
a.Gross income is $725, and he does not need to file a tax return.
b.Gross income is $400, and he does not need to file a tax return.
c.Gross income is $725, and he needs to file a tax return.
d.Gross income is $400, and he needs to file a tax return.
e.Gross income is $1,125, and he needs to file a tax return.
Which of the following is not considered an exclusion from gross income?
a.Inheritance
b.Bonus
c.Welfare payment
d.Military allowance
e.Life insurance paid upon death
Individuals must know their filing status to correctly compute both taxable income and the related income tax liability.
True
False
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