Income

Question 1

How is amortization of bond premium treated for tax purposes

Answer 1

reduces basis of bond and computed as constant YTM, also offsets interest income on bond

Question 2

are federal and state tax refunds included in taxable income

Answer 2

only to extent it did not reduce taxable income in prior year

Question 3

PI

Answer 3

AGI +Tax-exempt interest+50%of SSB

Question 4

Are employers reimbursements under a non-accountable plan included in employees income

Answer 4

yes and deductions are 2%

Question 5

how much of group term life insurance is excludable in employees income

Answer 5

first 50,000, if 200,000 in benefits, 150,000*IRS established uniform cost is in income