H&R Block Quiz Ch's 1-5 Latest Update Already Passed

H&R Block Quiz Ch's 1-5 Latest Update Already Passed What is Gross Income? - Any money that you made or worked for that is subject to tax. Also, all world-wide income from whatever source derived, unless specifically excluded from taxation by law. ( Money realized in any form whether in money, property, or services.) Income Financial gain derived from labor(work), capital (money), or a combination of the two. The financial gain derived from labor is generally referred to as "wages". What is Earned Income? Financial gain "that is" received for "services performed." Some examples of this include wages, commissions, tips, and generally, farming and other business income. What is unearned income? - Dividends, interests, unemployment that can still be considered taxable income. (Money received for investment of money or other property such as interest, dividends, rents, and royalties). Gross Income Included or Not ? ? a. Unemployment. Inc. b. Interests on a state or local bond- No. (Pg. 1.10 There's a Chart) c. Salary income- Yes. d. Federal income tax refund- No. e. Dividind income reported on a 1099 DIV? Yes. Gross Income Included or Not ? ? a. Unemployment. b. Interests on a state or local bond- (Pg. 1.10 There's a Chart) c. Salary income- d. Federal income tax refund- e. Dividind income reported on a 1099 DIV? 5. Scenario? Are they required to file? Scenario? Are they required to file? : Mike is 27, he has a gross income of 13,050 filing head of household with 1 dependent, is he required to file a tax return? (Chart 2.6) Yes they're $80 over. Scenario? Are they required to file? : Tim and Susan both age 35 has gross income of 20,380 and want to file a joint return, are they required to file? (Head of household means more than 1 exemption, and the brother because he's in the tree with 5,000, and he's 18.) - "She can claim 3." Scenario: June 27 lived with her brother Tim who is 18, her Fiancé (Boyfriend) Bill 29, daughter Kelly age 5, June's AGI 27,750, Tim's AGI is 5,000, and Bill's AGI is 4,000, and Kelly has no income. June qualifies and files head of household for 2014, they want to know how many Exemptions can June claim on her return? Not required. Scenario: Beth is 68, with gross of 10,950 (11,070) single w/ no dependents? (Look for answer in book). Scenario: Bill 34, and Linda 22, have gross income of 21,375, they are married filing jointly and over the limit. a. Relationship b. Age c. Residency d. Joint return e. Support What are the 5 tests that a taxpayer must meet for their child to be considered qualify child? (Page 3.2) Read chapter 5 Read chapter 5