Please match the terms with their explanation. It is recommended that you refer to Chapter 3 in the textbook as you complete this. If you aren't happy with your score, you can redo the question, because you have unlimited attempts.

Question 1 options:

	No-additional cost services, discounts, working condition benefits, de minimis benefits
	Excluded from income for low income individuals but up to 85% are taxable for high income individuals
	Tax free if the individual is a degree seeking student who uses the proceeds for qualified tuition and related expenses
	Interest can either be reported when bonds are redeemed or reported annually over the term of the bond
	Taxable because they are considered a substitute for taxable wages
	Includes jury duty pay, prizes and awards, forgiveness of debt
	Interest on municipal bonds unless the bonds are issued for private activities, such as convention center, industrial park or stadium
	Made from the earnings and profits of the payer corporation and are from domestic corporations or qualified foreign corporations
	The process of converting a noncash resource into cash or the right to cash
	Adjusted gross income plus: income on US savings bonds excluded for educational purposes, most tax exempt interest, employer provided adoption benefits, deducted interest on educational loans, deducted tuition and fees and 50% of social security benefits
	Occurs when all 3 tests have been met: economic benefit, transaction reaches conclusion, income is not tax exempt
	Tax free savings account used for educational expenses; also called 529 plan
	Comes from interest-earning deposits at financial institutions and reported on Form 1099-INT
	The lesser of a) the amount received, b) the amount deducted on Schedule A or c) the amount by which the itemized deductions exceed the standard deduction
	Income is available to or in control of the taxpayer
	Tax free to the recipient, but payer may be taxed

1.	Realization
2.	Income recognition for tax purposes
3.	Constructive receipt
4.	Interest income
5.	Series EE and Series E savings bonds
6.	Tax-Exempt interest
7.	Qualified Dividends
8.	Taxable amount of state and local refunds
9.	Unemployment Compensation
10.	Social security benefits
11.	Provisional income
12.	Other income
13.	Nontaxable employee fringe benefits
14.	Scholarships and fellowships
15.	Qualified Tuition Program
16.	Gifts and inheritances

Answer rating: 100% (QA)

SOLUTION 1 Noadditional cost services discounts working condition benefits de minimis benefits NON TAXABLE EMPLOYEE FRINGE BENEFITS 2 Excluded from in... View the full answer