q1

Steve worked as a tech supervisor for a computer company. In September of this year, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?

a. Steve will have to report all $7,000 of the unemployment compensation as income.

b. Unemployment compensation is never taxable.

c. Steve will have to report $4,600 of the unemployment compensation as income.

d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.

e. None of these choices are true.

q2

Steve worked as a tech supervisor for a computer company. In September of this year, he was laid off. He was paid unemployment compensation for the rest of the year totaling $7,000. Which of the following is true?

a. Steve will have to report all $7,000 of the unemployment compensation as income.

b. Unemployment compensation is never taxable.

c. Steve will have to report $4,600 of the unemployment compensation as income.

d. As long as the unemployment compensation payments are less than the taxpayer's previous salary, they are not taxable.

e. None of these choices are true.

q3

Laura and Leon were granted a divorce in 2008. In accordance with the decree, Leon made the following payments to Laura in 2018:

Child support payments contingent on the age of the child	$6,000
Indefinite periodic payments terminating on Laura's death	$4,000

How much of the payments can he deduct as alimony in 2018?

a. $0

b. $4,000

c. $10,000

d. $6,000

e. None of these choices are correct.