Phillip had a distribution of $ 1,500 from his education savings account and used $ 1,200 to pay for qualified education expenses. Before the distribution, Phillip's account balance was $ 4,000, of which $ 1,000 was earnings. Calculate the following: to. Non-taxable capital claim b.Your adjusted basis for your savings account. c. The potentially taxable distribution of earnings d. Income exempt from tax and. Taxable income
Phillip had a distribution of $ 1,500 from his education savings account and used $ 1,200 to pay for qualified education expenses. Before the distribution, Phillip's account balance was $ 4,000, of which $ 1,000 was earnings. Calculate the following: to. Non-taxable capital claim b.Your adjusted basis for your savings account. c. The potentially taxable distribution of earnings d. Income exempt from tax and. Taxable income
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 24MCQ
Related questions
Question
1
Transcribed Image Text:Phillip had a distribution of $ 1,500 from his
education savings account and used $ 1,200
to pay for qualified education expenses.
Before the distribution, Phillip's account
balance was $ 4,000, of which $ 1,000 was
earnings. Calculate the following:
to. Non-taxable capital claim
b.Your adjusted basis for your savings
account.
c. The potentially taxable distribution of
earnings
d. Income exempt from tax
and. Taxable income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT