1.Which one of the following would be included in gross income for federal tax p

ID: 2542833 • Letter: 1

Question

1.Which one of the following would be included in gross income for federal tax purposes?

As an employee of Air Canada, Ethel flew to the UK in an empty seat on the plane

Chris received $600 of unemployment compensation after he was laid off from his job

Exxon reimbursed Donna for her legal expenses she paid when she adopted her son

Audrey’s son is enrolled in her employer’s day care center located in her office building

2.Which one of the following would not be included in gross income for federal tax purposes?

Cory found $500 of gold coins while he was hiking

Mary received $100 of worker’s compensation after she was injured at work

Becky was paid $15 for jury duty which she was not required to give her employer

Ricky realized a $200 gain when he sold his Xerox stock

Q1 Second option is correct.

Unemployement compensation is taxable

Q2 Second option is correct.

Worker's compensation is not taxable at federal level.

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