Question

1.) Which of the following is included in an individual taxpayers federal gross income?

A. Disaster relief payment

B. A federal income tax refund

C.Interest on state and local municipal bonds

D. Unemployment compensation

2.) Which of the following is an example of unearned income?

A. Compensation received by a self employment, freelance photographer for service provided.

B. Interest earned on saving account

C. Tip

D. Wages from a part time job

3.) Howard and Teresa were married for 52 years. Howard died on May 9 2019. Teresa has no dependents and she did not remarry. The correct and most favorable filling status for teresa's 2019 return is

A.Married filing joint

B. Married filing seperate

C. SIngle

D. Qualifying widow.

Answer 1

1.First, federal income tax refunds are not taxable as income. ... However, if you itemized your deductions and elected to deduct the state income taxes in an earlier year federal tax return, then generally it must be included in income on your next federal tax Form 1040.

If you received unemployment compensation during the year, you must include it in gross income. ... You should receive a Form 1099-G, Certain Government Payments showing the amount of unemployment compensation paid to you during the year in Box 1, so in the current senario i am assuming as the we have not itemized our deductions and hence the answer is unemployment compenstation.

2.Unearned income is income from investments and other sources unrelated to employment. Examples of unearned income include interest from savings accounts, bond interest, alimony, and dividends from stock

so hence answer in this case is Interest from savings accounts

3.

Qualifying Widow (or Qualifying Widower) is a filing status that allows you to retain the benefits of the Married Filing Jointly status for two years after the year of your spouse's death. You must have a dependent child in order to file as a Qualifying Widow or Widower. In fact, the full name of this filing status is actually "Qualifying Widow(er) with a Dependent Child".

If you file as Qualifying Widow (or Widower) with Dependent Child, you will get the same tax benefits that you would get if you filed as Married Filing Jointly. The Qualifying Widow (or Widower) filing status entitles you to use the Married Filing Jointly tax rates and the highest standard deduction amount (if you do not itemize deductions).

If your spouse died during the tax year, you can still use Married Filing Jointly as your filing status for that year (as long as you otherwise qualify). For two years after that, you may be eligible for the Qualifying Widow (or Widower) with Dependent Child filing status.

since in the current senario it suit to file the Qualifying Widow.