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McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068 Exercise 48
Hardaway earned $100,000 of compensation this year.He also paid (or had paid for him) $3,000 of health insurance.What is Hardaway's AGI in each of the following situations (ignore the effects of Social Security and self-employment taxes)?
a.Hardaway is an employee, and his employer paid Hardaway's $3,000 of health insurance for him as a nontaxable fringe benefit.Consequently, Hardaway received $97,000 of taxable compensation and $3,000 of nontaxable compensation.
b.Hardaway is a self-employed taxpayer, and he paid $3,000 of health insurance himself.He is not eligible to participate in an employer-sponsored plan.
a.Hardaway is an employee, and his employer paid Hardaway's $3,000 of health insurance for him as a nontaxable fringe benefit.Consequently, Hardaway received $97,000 of taxable compensation and $3,000 of nontaxable compensation.
b.Hardaway is a self-employed taxpayer, and he paid $3,000 of health insurance himself.He is not eligible to participate in an employer-sponsored plan.
Explanation
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Calculation of AGI (Adjusted Gross Incom...
McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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