Question

Alice Johnson, Social security number 2222-23-3334 is a single taxpayer and is employed as a secretary by state university of florida. she has the following items pertaining to her income tax return for the current year.

-received a $30,000 salary from her employer, who withheld $4200 federal income tax.

- received a gift of 1000 shares of Ace corporation stock with a $100,000 FMV from her mother. She also received $4000 of cash dividends from the Ace Corporation. The dividends are qualified dividends.

- Received $1000 of interest income on bonds issued by the city of Tampa

- Received a regular stock dividend (nontaxable under sec 305) of 50 shares of ace corporation with a $5000 FMV -Alice's employer paid $2000 of medical and health insurance premiums on her behalf

- received $13,000 alimony from her ex-husband. They divorced on Aug 1, 2014

- State university provided $60,000 of group term life insurance, Alice is 42 years old and is not a key employee. The table in the text is applicable

- received a $1000 cash award from her employer for being designated the secretary of the year

- total itemized deductions are $10,000

complete form 1040 and accompanying schedules for Alice Johnsons 2019 return

Answer 1

Solution:-

$10,000 coverage of group term life insurance coverage is taxable. for her age taxable perquisite comes to $12.