Question

Please detailed answer.

1. June is a cash basis taxpayer, and is a fashion and makeup consultant in a high fashion company, Curlylocks, Inc. She earned a salary of $60,000. She also was provided a disability income protection policy for which Curlylocks paid a $1,500 premium for June's insurance. The company also provided health insurance for her which cost the company $15,000, and long term care insurance for her which Curlylocks paid a $1,000 premium.   

Her salary would have been $65,000, but she was paying off her school loan at $5,000/year and Curlylocks agreed to reduce her salary by $5,000 and to pay $5,000/year amount toward her school loan for her. The long-term care insurance policy was provided for all employees, to help to pay for future nursing home costs if needed, the health care and disability insurance were likewise provided for all.   While her salary was $60,000, Curlylocks Inc. had a 401(k) plan and June voluntarily put $3,000 of her $60,000 salary, 5% of it, into her 401(k). Her employer Curlylocks matched that with a $3,000 contribution of its own money into her 401(k).

What is June's taxable income from Curlylocks this year?

Answer 1

GIVEN THAT :-

According to the question we have that ,

She earned a salary of $60,000.

Curlylocks paid a $1,500 premium

and many other values

TO FIND :- What is June's taxable income from Curlylocks this year?

total payment for june

= SALARY + PMT   TOWARDSLOAN

=60000+50000

=$ 65000

health incusance premium = $15000

long term curlylock insurance = $1000

employerrs contribution = $3000

insurance premium paid by company = $1500

total sum of the above =15000+1000+3000+1500

=20500

for finding the total gross amount

= the above sum + june salary

= 60000+20500

=85500

therefore,

total gross amount taxable is $85500.

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