Ron and Mary are both 67 years of age. David still works and earned $35,000 last year. David received and paid the following items as well:
 

Advanced commissions for services to be performed in the future $2,500
Payments by his employer under a qualified plan for dependent care $2,000
Sick pay due to illness paid by insurance company
(premiums paid for by his employer) $2,000
Cash allowance to pay for meals during working hours 500
Payments by his employer to a qualified pension plan $1,400
Group-term life insurance paid by his employer on insurance coverage
Of $40,000 200
David and Becky also have the following items of income:
Interest income $3,000
Social security benefits $36,400
Determine taxable income.

Keep in mind that some of them are taxable and others not.

Answer rating: 100% (QA)

Davids taxable income can be determined by adding all of his taxable income sources and sub... View the full answer