Question

Nadiya 28 is single. She paid $2,000 in eligible student loan interest during the year. She also received income from the following sources:
$35,000 in wages
Unemployment income of $4,320
$300 in gambling winnings from a winning lottery ticket

Use Schedule 1 (Form 1040) Additional Income and Adjustments to Income to help you complete the first 7 lines on page 2 of form 1040.

Answer 1

Particulars Wages Unemployed income Gambling winning Amount $ 35,000.00 4,320.00 300.00 $ Total Income 39,620.00 $ Student Loan interest 2,000.00 Taxable income 37,620.00 Form 1040 an IRS tax form used for personal federal income tax returns filed by United States residents. The form calculates the total taxable income of the taxpayer and determines how much is to be paid or refunded by the government. Paying interest on a Student Loan is deductible up-to $ 2,500. The US government imposes an income tax on wages and salaries. Unemployment compensation generally includes any amount received under the unemployment compensation laws of the United States and is includible in taxable income. Winning of any type are includible in income. So, Full amount of gambling winning is includible in taxable income.