Sandler family consists of two married adults, and two teenagers. Mr. and Mrs. S

Question

Sandler family consists of two married adults, and two teenagers. Mr. and Mrs. Sandler will file their IRS return as a joint return. Their financial
data is as follows:

Gross income:Samuel (father) $42,000; Jerri (mother) $40,000

Life insurance proceeds from a deceased aunt: $10,000

Interest from savings: $140

Alimony from Jerri's ex-husband:  $4380

Child-support payments received from Jerrii's ex-husband: $14,200

Cash as a Christmas gift from Samuel's parents: $500

Tuition/books scholarship Jerri received to go to college part time last year: $1600

Determine the total reportable gross income:
This is the income they earned and received during the year, not just their salaries. Check pages 109-113 and make sure you get the right items to include as income.
What is the total reportable gross income from all sources

Explanation / Answer

The Total Reportable Gross Income has been calculated below with comments for inclusion/exclusion provided seperately:

Comments Gross Income (42,000 + 40,000) $82,000 Included in Reportable Income. Life Insurance Proceeds from a Deceased Aunt 0 Not Included in Reportable Income. The amount is recieved by the beneficiary in this case. Interest from Savings 140 Reportable as any amount greater than $10 received in form of Interest is treated as reportable income. Alimony from Jerri's Ex-Husband $4,380 Reportable as alimony is considered taxable as per the provisions of IRS. Child-support payments received from Jerrii's ex-husband 0 Child-support payments are not considered as taxable income as per IRS and not included in reportable income. Cash as a Christmas gift from Samuel's Parents 0 Gifts received are not considered as a part of reportable income. Tuition/books scholarship Jerri received to go to college part time last year 0 Not Included in Reportable Income. Scholarships received in the form of tution/books is not included in reportable income. Total Reportable Income $86,520

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