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Walt received the following in 2020: $46,000 salary $5,000 gain on the sale of a state...

Walt received the following in 2020: $46,000 salary $5,000 gain on the sale of a state bond sold in 2020 $1,000 interest on savings account $1,000 interest on municipal bond $2,000 interest on US Treasury bond $3,000 qualified dividends $100,000 life insurance proceeds. Walt was named as the beneficiary on his father's life insurance policy, and Walt's father passed away in 2020. What is Walt's gross income for 2020?

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Answer #1
Calculation of Walt's Gross Income for 2020 Currency $
Salary 46000
Gain on sale of state bond sold in Year 2020 5000
Interest on Savings Account 1000
Interest on Municipal Bond 1000
Interest on US Treasury Bond 2000
Qualified Dividends 3000
Walt's Gross Income for the Year 2020 58000
Note - Proceeds from Life Insurance as beneficiary of due to death of his father
are not included in the Gross Income. However, the Interest on what you receive
is Taxable and you should report it as Interest received
Hence , $ 100000 proceeds as life insurance proceed would not be included in
Walt's Gross Income
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