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10 Cards in this Set

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  • Back
Sally's yearly annuity receipt is $6000 and her exclusion Amount is $3051. What is Sally's

1. Gross Income
2. Return of Capital
1. $2949
2. $3051
When does the annuitant began to get taxed on the entire annuity payment?
When the recovery of capital has been fulfilled
You die 27 years before your annuity contract expires. What deduction are you eligible for on your final return?
(Recovery of Capital w/ Each Annuity Payment) x (Number of Payments Forfeited by Death)
How do you find the exclusion amount using the simplified method?
TRUE OR FALSE

FMV of Prizes and Awards must be included in gross income
True
The premiums on the first $__?___ of group term life insurance protection are excludible from the employee's gross income.
$50,000
Is unemployment compensation taxable?
Yes
If a taxpayer's income exceeds a specified base amount, as much as ___% of Social Security retirement benefits must be included in Gross Income.
85%
To determine the taxable amount of Social Security benefits, we use?
MAGI

Modified Adjusted Gross Income
How do you compute MAGI