Tina Marcelle received the following items and amounts of incomeduring 2007. Hel

Question

Tina Marcelle received the following items and amounts of incomeduring 2007. Help her calculate (a) her gross income and (b) thatportion (dollar amount) of her income that is tax exempt.

Salary:          $33,500
Dividends:                                       $800
Gift from mother:       $500
Child support fromex-husband:        $3,600
Intrest on savings account:       $250
Rent:                                               $900
Loan frombank:                              $2,000
Intrest on state government bonds:    $300

Explanation / Answer

Child support payments are not tax deductible for the payer,nor do they count as taxable income for the payee....so we do notcount this toward income :
gift from mother is not taxable : loan from the bank is not taxed : rent they say these are all income items so itstaxable.....must be a net figure of rent collected : salary                                                        33500 dividends                                                       800 interestsavings                                             250 interst onbonds                                            300 rent                                                                 900 : totalincome                                              35750 :
total tax exempt is :
gift                                               500 childsupport                                 900 loan                                              2000 :
total taxexempt                          3400

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