Intuit Academy 1 Continuation -
Gross Income Questions with 100%
Correct Answers
Gross Income Correct Answer: is the sum of the taxpayer's income earned in a
year, which may include salary, dividends, capital gains, interest income,
royalties, rental income, alimony, and retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI
are referred to as adjustments to income.
Adjusted gross income (AGI) Correct Answer: is a figure that the Internal
Revenue Service uses to determine a taxpayer's income tax liability for the year.
The IRS calculates it by subtracting certain adjustments from gross income, such
as educator expenses, student loan interest, and other adjustments.
Common Transactions as Exclusions:
Some common transactions as exclusions or deductions from gross income are:
Correct Answer: Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
,Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments Correct Answer: Payment to Spouse
ex-spouse
former spouse
legal separation instrument
What expenses qualify Correct Answer: remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
, person who is receiving alimony will treat as a income
what information needed to complete the schedule 1 Correct Answer: Exact
amount, Social Security number, date of divorce
Before December 31, 2018 Correct Answer: Taxable consequences of alimony
applies to divorce decrees
Early withdrawal penalty Correct Answer: early withdrawal, charged , maturity
date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance Correct Answer: Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
Gross Income Questions with 100%
Correct Answers
Gross Income Correct Answer: is the sum of the taxpayer's income earned in a
year, which may include salary, dividends, capital gains, interest income,
royalties, rental income, alimony, and retirement distributions.
Certain items subtracted from a taxpayer's gross income to calculate their AGI
are referred to as adjustments to income.
Adjusted gross income (AGI) Correct Answer: is a figure that the Internal
Revenue Service uses to determine a taxpayer's income tax liability for the year.
The IRS calculates it by subtracting certain adjustments from gross income, such
as educator expenses, student loan interest, and other adjustments.
Common Transactions as Exclusions:
Some common transactions as exclusions or deductions from gross income are:
Correct Answer: Educator expenses
Self-employment tax
Alimony payments
Early withdrawal penalty
Self-employed health insurance
,Charitable contributions
Traditional IRA
Health savings account
Student loan interest
Jury duty
Alimony Payments Correct Answer: Payment to Spouse
ex-spouse
former spouse
legal separation instrument
What expenses qualify Correct Answer: remarriage
death
court order
medical bills
housing costs
other expenses
person who is paying alimony will deduct to income
, person who is receiving alimony will treat as a income
what information needed to complete the schedule 1 Correct Answer: Exact
amount, Social Security number, date of divorce
Before December 31, 2018 Correct Answer: Taxable consequences of alimony
applies to divorce decrees
Early withdrawal penalty Correct Answer: early withdrawal, charged , maturity
date
expenses qualify : deduct penalties, drawing fundsdeferred interest .
How to report :
Interest income -form 1099-int
Deduction -form 1040 Schedule 1
Self-Employed Health Insurance Correct Answer: Net profit on schedule c
Deduct the cost
Who is eligible?
Medical, dental, vision, Supplemental, Long term care
self-employed taxpayer, tax payer spouse, tax payer dependents
Other rules: can't
