Question

Question 10
George, a cash-basis taxpayer, was ill for several days in 2019 and received sick pay from his company. George will not be required to report this as income for 2019.
   1) True
   2) False

Question 11
Ron Rake is a candidate for a master's degree at State University. During 2016, he was granted a fellowship that provided:

Tuition   $8,000
Books and supplies   1,500
Room   2,000
Board   1,000

What is the amount Ron may exclude from gross income for 2016?

1) $12,500

2) $11,500

3) $9,500

4) $8,000

Answer 1

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Answer is highlighted in yellow: Both are individual questions, although both have been answered: Solution: 2) False Answer:10) Explanation: Because, as per IRS, sick pay is not a reimbursement of medical expense. It is the payroll in a particular condition. It is standardized. No further explanation require. 3) $9,500 Answer: 11) Explanation: As per IRS, Fellowship for Tuition fees and Books and supplies expenses are eligible for deduction. Room and boarding is not a deductible expense.