Sandy, age 40, is blind. She has one dependent child who lives with her and rece
ID: 2427395 • Letter: S
Question
Sandy, age 40, is blind. She has one dependent child who lives with her and received the following amounts this year.
Insurance proceeds from the death of her grandfather
$ 10,000
Child support payments from her ex-spouse
15,000
Salary
45,000
Court awards for the crash that made her blind. None of the payments were punitive.
100,000
Interest income from her bank
6,000
Interest income from city of Dallas bonds
3,000
Required:
Calculate Sandy’s taxable income.
Calculate Sandy’s tax liability.
Insurance proceeds from the death of her grandfather
$ 10,000
Child support payments from her ex-spouse
15,000
Salary
45,000
Court awards for the crash that made her blind. None of the payments were punitive.
100,000
Interest income from her bank
6,000
Interest income from city of Dallas bonds
3,000
Explanation / Answer
All amount in $ Total Income Taxable Income Excempt Income Insurance proceeds from the death of her grandfather 10,000 10,000 Child support payments from her ex-spouse 15,000 15,000 Salary 45,000 45,000 Court awards for the crash that made her blind. None of the payments were punitive. 1,00,000 1,00,000 Interest income from her bank 6,000 6,000 Interest income from city of Dallas bonds 3,000 3,000 1,79,000 54,000 1,25,000
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