ACC 330 Module Two Income Assignment Template

School: Boise State University - Course: ACC 330 - Subject: Accounting

Select three cases from the Module Two Income Assignment List. Research all three cases using the Tax Research Guide. Document your specific findings briefly and specifically as shown in the example. Note: The Income Assignment List and the Tax Research Guide are located in the Supporting Materials section of the Module Two Income Assignment Guidelines and Rubric. CriteriaExampleCase #1Case #2Case #3 Case SelectedTaxpayer D receivedroyalties from authoring atextbook for a sciencecourse taught at the localcommunity college.Grace-Ann received $100 aweek for 12 weeks to babysither grandson, Alec, while hisparents were at work.Cari's grandmother sent her$12,000 in May as a gift, andanother $5,000 was paiddirectly to her school in August for tuition. Justin received $12,000 in alimony payments for a divorce agreement settled in 2021. SummaryTaxation of RoyaltiesCash income; cash receipts;income requirements forreporting - "Income such aswages, salaries, tips, andbartering is taxable."(IRSvideos, 2021) However,the IRS only requires reporting if an individual makes over a certain amount. (IRS, 2023) Gift Tax - "Gifts andinheritances are generally tax-free to the recipient."(IRSvideos, 2021)Alimony tax - "Alimony payments are also tax-free to the recipient for divorce agreements made or updated in 2019 or later." (IRSvideos, 2021) AuthoritativePrimaryResourceIRC Section 61(a)(6) - Grossincome defined.https://uscode.house.gov/ view.xhtml? req=granuleid:USC-prelim- title26- section61&num=0&edition =prelimIRS. (2023, February 14).Publication 501 (2022),Dependents, StandardDeduction, and FilingInformation | InternalRevenue Service. RetrievedMarch 10, 2023, fromU.S. House of Representatives.(n.d.). 26 USC 2502: Rate oftax. Retrieved March 10, 2023,from uscode.house.govwebsite:https://uscode.house.gov/view.xhtml?req=granuleid:USC-IRS. (n.d.-b). Topic No. 452 Alimony and Separate Maintenance | Internal Revenue Service. Retrieved from www.irs.gov website: https://www.irs.gov/taxtopics/t c452

CriteriaExampleCase #1Case #2Case #3 www.irs.gov website:https://www.irs.gov/publications/p501#en_US_2022_publink1000220691 prelim-title26- section2502&num=0&edition= prelim SecondaryResourceIRS Publication 525 -Taxable and NontaxableIncomep. 17https://www.irs.gov/pub/irs-pdf/p525.pdfClearValueTax reports that asingle individual not claiminga dependent that only made$12,200 or less as anemployee should not wastetheir time filing a tax return.(ClearValueTax, 2020)IRS. (n.d.). Interactive TaxAssistant. Retrieved March 10,2023, from www.irs.govwebsite:https://apps.irs.gov/app/IPAR/screen/IPAR_1/en-US/summary?user=guestPerez, W. (2022, December 8). How To Report Alimony Payments on Your Taxes. Retrieved March 10, 2023, from The Balance website: https://www.thebalancemoney .com/alimony-and-taxes- 3193082 This source states more clearly that "If you got divorced in 2019 or later, alimony doesn't affect your taxes. Payments you make are not tax deductible and alimony income isn't taxable". SupplementalResource(s)What is Taxable andNontaxable Income?IRS.gov. March 14, 2022.https://www.irs.gov/businesses/small-businesses-self-employed/what-is-taxable-and-nontaxable-income#:~:text=Royalties%20from%20copyrights%2C%20patents%2CClearValueTax. (2020, March8). You are NOT Required toFile a Tax Return in TheseSituations. Retrieved March10, 2023, fromwww.youtube.com website:https://www.youtube.com/w atch?v=FSo0kjrqOzk IRSvideos. (2021, February 18).Taxable and NontaxableIncome. Retrieved March 10,2023, from www.youtube.comwebsite:https://www.youtube.com/watch?v=k-oc6kkJl0YIRSvideos. (2021, February 18). Taxable and Nontaxable Income. Retrieved March 10, 2023, from www.youtube.com website: https://www.youtube.com/wat ch?v=k-oc6kkJl0Y