Please give a response and reference for the. For this week's discussion, I chose to look at line $6$a which is Social Security Benefits and along with part b which is the Taxable Amount amongst the Social Security Benefits. The Social Security Benefits line on the IRS Form $1040$ is important because it shows us the amount of benefits that you have received from the course of the year. This line is also used to be able to calculate your taxable amount for your social security benefits, which is usually taxed to federal income tax. Generally, the taxable amount of your Social Security benefits depends on the amount of your monthly earnings and how much of that you contribute to your retirement. For example, you can receive different amounts of social security based on your current life situation. If your spouse dies, you may be eligible for higher social security, and people with lower social security benefits may be experiencing this due to employer options and lower monthly earnings.

One item of gross income that is excluded from income is the income from the gifts that have been received further in$,$ gifts that are correlated with Tuition or medical expenses you pay for someone $($the educational and medical exclusions$).$ Generally this is accepted as a non$-$taxable gift which helps out with the already soaring high prices of tuition within schools.