Question

EE ag of Beth's 6,500. For Ef any, ner 40. Roger Corby, a student, was employed sever nights a week at the Campus Inn as a desk clerk. He was required to be on duty from 11 p.m. to 6 a.m. and on call at various or hours, although he was rarely called after 12 a.m. His employer also required that he live on the premises and furnished him with a room free of charge, adjacent to the desk. Roger used the room as his permanent living quarters. Roger also ate all his meals free in the Inn dining room. Roger excluded the value of all these benefits from his tax return. What was the response of the IRS examiner? she ada ude 2019 41. On May 1, 2019, Anthony was in an automobile accident while on his way to work. Following doctor's advice, Anthony stayed home for six months to recover from his injuries. While at home, Anthony filed a lawsuit against the other driver. On December 1, 2019, the lawsuit was settled and Anthony received the following amounts: er in icly court ven Compensation for lost wages Personal injury damages (none of which was for punitive damages) $30,000 50,000 lude ether How much of the settlement must Anthony include in ordinary income on his 2019 tax return? ctor

Answer 1

Part 40

Roger Corby should exclude lodging expense in the income but he should include 50% of meals expense received during the work and 100% of meals expense received not during work in his gross income

Part 41

Include in ordinary income = Compensation for lost wages = $30,000

Part 42

Anser is option D

d. $11900

combined income =3000+6000+5000+15000+9000+(14000*50%) = 44500 is greater $34000 and therefore 85% of social security benefits are taxable.

14000*85% = 11900