Dan and Laura Douglas, a married couple, will file a joint return for 2022. Dan,
who is disabled, received $7,650 in social security benefits for the year. Laura,
who is employed full time, earned $32,400 in 2022. The couple also received
$5,280 of interest from tax-exempt municipal bonds in 2022. The Douglases had
no other income in 2022. Determine the amount of Social Security benefits
that should be included in the Douglases' 2022 gross income.

2. During 2022, John made monthly alimony payments of $3,950 and monthly child
support payments of $470 to his former wife Rose. John's divorce decree was
finalized in 2019. Determine the amount (if any) that Rose must include in her
2022 gross income.

3. Mr. A, an employee of X Corporation, received the following benefits from his
employer during the 2022 calendar year. (a) Salary of $47,000 (b) vacation wages
of $1,875 and (c) a Christmas bonus of $1,900 in gift certificates redeemable at a
local shopping mall. How much is includible in Mr. A’s 2022 gross income?

Answer rating: 100% (QA)

For the Douglases the amount of Social Security benefits that should be included in their 2022 gross income depends on their combined income for the y... View the full answer