1. Quinn won second place in the 2021 Salt Lake City Marathon and received $7,500 in prize...
Question:
1. Quinn won second place in the 2021 Salt Lake City Marathon and received $7,500 in prize winnings. Quinn asked the organizers of the marathon to transfer her prize money directly to Big Brothers Big Sisters, a qualifying charitable organization. Her request was granted and instead of sending the $7,500 check to Quinn, the Marathon sent $7,500 to Big Brothers Big Sisters on Quinn's behalf. How much gross income must Quinn report related to these events on her 2021 tax return?
0
3,750
7,500
2. Avery and Mike are divorced. Their divorce was finalized on June 30, 2018. Pursuant to their written divorce decree, Avery must pay Mike $24,000 in alimony each year for ten years. These payments will cease in the event Mike dies. Avery makes the required payments in 2021. How much gross income must Mike report on his 2021 tax return?
24,000
12,000
0
