Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: • At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. • She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. Required: How much of the above transactions will be excluded from Annie's income for 2022?
Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: • At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. • She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. Required: How much of the above transactions will be excluded from Annie's income for 2022?
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 26CE
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Transcribed Image Text:Problem 7: Exclusions from income
Annie Wilkes is a single taxpayer who reports the following transactions
during 2022:
●
At her part time job she uses the gym on the company premises that is
available to all employees. The total value of the gym membership is
$1,500
• She receives $700 a month from an annuity she purchased on
1/1/2020 for $50,000 when she was 35 years old (which is also the
age she began receiving payments). The annuity will pay her for the rest
of her life.
• She received $20,000 from the University of Kansas. Of this, $2,000
represented a scholarship to cover tuition, $17,000 a stipend to assist
with living expenses, and 1,000 for book purchases.
She received a refund of $2,000 for a contribution to her health
savings account (HSA) made in 2021.
●
Required: How much of the above transactions will be excluded from
Annie's income for 2022?
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