For 2018 taxes (only answer if you know current tax law and exclusions for filing in 2019)
Mel, a single taxpayer, received the following items in 2018. Dividends of $450, wages of $32,000, child support from his ex-spouse of $400 per month, a new telelvision worth $1200 from a door prize at a professional conference he attended., a gift of $3,000 from his parents, and $200 of interest on bonds issued by the State of Arizona. Mel put $4,000 of his wages into his employer's dependent care flexible spending account (the $4,000 has not been deducted from his $32,000 in wages listed previously). He also receives a reimbursement of $270 per month to pay for public transportation passes each month (the monthly reimbursement of $270 has not been deducted from the $32,000 in wages). Based on the above, what is Me's gross income for 2018? Show supporting answers below.
Particulars | Amount | Explanation |
Dividends | $ 450 | |
Wages | $ 32,000 | |
Child support | $ - | Exempt from tax |
Prize | $ 1,200 | |
Gift from parents | $ 3,000 | Exempt from tax |
Interest on state bonds | $ - | Exempt from tax |
Dependent care FSA | $ - | Within annual limit |
Transit pass | $ 120 | Exempt up to $260 per month |
[(270-260)*12= $120] | ||
Gross income | $ 36,770 |
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