Question

Which of the following is not excluded from an individual taxpayer's Gross Income?

Group of answer choices

c. Trust income distributed to taxpayer

d. Distribution from Coverdell ESA or 529 plan used for qualified higher education purposes

a. Roth IRA distribution before age 59 1/2 up to basis amount contributed in Roth IRA

b. Debt forgiven to the extent the taxpayer is insolvent

Answer 1

Roth IRA distribution before age 59 1/2 up to basis amount contributed in Roth IRA is not excluded from an individual taxpayer's Gross Income.

Correct answer is option a.

Explanation:

Debt forgiven to the extent the taxpayer is insolvent is not included in Gross income.

Trust income distributed to taxpayer is also not included in gross income.

Distribution from Coverdell ESA or 529 plan used for qualified higher education purposes is not included in taxable income.