During the year, Juanita has the following income: Gift from her father to help with her student loans $8,500 Interest income on

Question

2 years ago

5

During the year, Juanita has the following income: Gift from her father to help with her student loans $8,500 Interest income on

US Treasury Bond $400 Interest income on the municipal bond issued by the City of Chicago $250 Interest income from her savings account at BMO Bank $165 Life insurance proceeds on the death of her mother $45,000 What is Juanita's gross income for the year

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1 answer:

stich3 [128] · Answer 1 · 2022-03-05T01:48:56+03:00

Answer:

$565

Explanation:

First of all, the person that receives a gift does not pay taxes for it. Also, proceeds from a life insurance policy are not taxable either. Municipal bonds are not taxed by the federal government.

This means that Juanita's taxable income = $400 interests from Treasury bonds + $165 interests from savings account = $565.