RULE: Gross income includes all income unless it is specifically
excluded in the tax code.
Choice "a" is correct. Wages and all unemployment compensation are not
excluded from being taxable; therefore, they are included in the taxpayer's
gross income for tax purposes.
| |
|---|
Wages received | $ 35,000 |
State unemployment
compensation | 6,400 |
Employer's unemployment
compensation plan | 2,000 |
| $ 43,400 |
Choice "b" is incorrect. All forms of unemployment compensation are included
as part of gross income.
Choice "c" is incorrect. The $6,400 of state unemployment compensation
received is included as part of gross income.
Choice "d" is incorrect. The $2,000 of his former employer's company-paid
supplemental unemployment benefit plan is included as part of gross income.
