Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter4: Income Exclusions
Section: Chapter Questions
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1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021?

a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income.

b.Robert must claim the $1,200 premium paid by his employer as income.

c.Robert must claim the $6,800 paid by the insurance company for the operation as income.

d.None of these events are taxable on his 2021 return.

 

2. Electronically filed tax returns:

a.Have error rates similar to paper returns.

b.Offer faster refunds than paper returns.

c.May not be transmitted from a taxpayer's home computer.

d.Constitute less than 50 percent of the returns filed with the IRS.

 

3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of wages from a part-time job at the college book store. What is Ann's filing status for 2021?

a.Married, filing separately

b.Head of household

c.Qualifying widow(er)

d.Single

e.None of these choices are correct.

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