Question

Question 12 (1 point) Taxpayers paying or receiving alimony must file Form 1040. 1) True 2) False a o Question 13 (1 point) The imputed interest rules do not apply to compensation-related loans of $10,000 or less (assuming no tax avoidance motive). ! 1) True 2) False Question 14 (1 point) The "kiddie tax" is imposed on any child who has at least one living parent or stepparent. 1) True 2) False Question 15 (1 point) For higher-income taxpayers, it is possible that their social security benefits may be 100% taxable.

Answer 1

12)	TRUE	Alimony received is reported as taxable income, and the person making the alimony payment may claim a deduction in the year of payment on form 1040.
13)	TRUE	There is a exemption of  imputed interest rules of $10,000 for compensation-related loans and corporation-shareholder loans
14)	TRUE	The kiddie tax applies to all children 19 and under, and children who are dependent full-time students between the ages of 19 and 23.
15)	FALSE	Between $25,000 and $34,000 income :  50% of scial security  benefits is taxable and More than $34,000 Up to 85% of the  benefits may be taxable.