Ms. smith us a 46 year old unmarried cash basis taxpayer. during 2018, Ms smith had the following transactions.
wages received from abc co 52,000
ms smith invested 1000 in a one year certificate of deposit on july 1 2018, it will be worth 1050 when it matures in 2019
interest earned on a savings account but not withdran: 150
received workers comp while off work due to injurt at company: 10,000
ms smith owed 3000 on personal credit card. creditor accepted 1000 in full satisfaction of debt, she is neither insolvent or bankrupt
won a tv worth 400 in magazaine contest but gave to charity
received 5200 for loss of income due to illness under accident and health policy thst she purchased on her own
holiday cash bonus everyone got same, 250
determine 2018 gross income and what components were used
| (A) Calculation of Gross Income of Ms. Smith of 2018 | |
| Particulars | Amount |
| Wages Received | 52000 |
| Interest On Saving A/c | 150 |
| Winning TV | 400 |
| Cash Bonus | 250 |
| Full Satisfaction of Debt (3000-1000) | 2000 |
| Workers Comp (WN-1) | - |
| Loss of Income Under Health Policy (WN-1) | - |
| Gross Income | 54800 |
| (WN-1) - Under Federal tax laws compensation for personal physical injury or physical sickness is excluded from Gross Income. | |
Ms. smith us a 46 year old unmarried cash basis taxpayer. during 2018, Ms smith had...