Susan\'s salary is $44,000 and she received dividends of $600. She received a st
ID: 2484255 • 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.
Requirement
Which amounts are taxable? (Complete all answer boxes.)
Salary, $44,000 (Yes/No)
Dividends received, $600 (Yes/No)
Share of partnership income, $4,000 (Yes/No)
Partnership distribution in the current year, $1,000 (Yes/No)
Partnership distribution in the following year, $600 (Yes/No)
State lottery winnings of $2,000 (Yes/No)
Explanation / Answer
Amounts Taxable Susan's Salary 44000 Dividends 600 Share of partnership Income 4000 Lotter Winnings 2000 Susan is not taxed on the partnership distributions as she has already paid tax on the partnership’s income. To tax the partnership distributions would create double taxation. She can also deduct the cost of lottery tickets if she itemizes
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