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Susan\'s salary is $44,000 and she received dividends of $600. She received a st

ID: 2425188 • Letter: S

Question

Susan's salary is $44,000 and she received dividends of $600. She received a statement from SJ partnership indicating that her share of the partnership's income was $4,000. The partnership distributed $1,000 to her during the year and $600 after year-end. She won $2,000 in the state lottery and spent $50 on lottery tickets.

Which of the below are taxable?

Salary, $44,000

Dividends received, $600

Share of partnership income, $4,000

Partnership distribution in the current year, $1,000

Partnership distribution in the following year, $600

State lottery winnings of $2,000

Explanation / Answer

Susan's salary of $44,000 is taxable under the head income from salary.
And Susan's state lottery of $2000 is taxable under the head income from other sources.
No allowance for cost of ticket of $50 will be given.