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

Answer 1

Ans : Additional income and Adjustments to income of Nadiya using schedule 1 ( firm 1040) :

1). Wages. $ 35,000

2). Unemployment income $ 4,320

3). Gambling winning. $ 300

________________

Total income $ 39,620

Less : Student Loan interest    $ 2,000

_____________

Taxable income $ 37,620

Note : 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.