[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for REG.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

[Anonymous]

@ future Federal tax refund will be exclude from the income but the state tax refund will only be exclude if you don't itemized the last year.
interest on both federal and state tax refund is taxable.

[Future Ninja]

workers compensation due to personal injuries = NOT INcluded in GI. are there any other circumtances where it will be included in GI? i swear i'm very confused bec I think I remember I bumped into a question which included workers compensation.

AUD - 79 (expired) retaking July 28,2016
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[Future Ninja]

@Ano – now im confused!

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
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[Future Ninja]

@Ano – what if it doesn't say so? like for this question: how will i know?

During 2015, Clark received the following interest income:

On Veterans Administration insurance dividends left on deposit with the V.A……$20
On state income tax refund……30

What amount should Clark include for interest income in his 2015 return?

A. $50
B. $30
C. $20
D. $0

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@Future Ninja

If it doesn't specifically say they itemized deductions the prior year, my gut feeling is to include it in gross income.

Your answer key doesn't explain why the $30 is not included?

[Future Ninja]

@CantStopWontStop – correct answer is usd30.00 only. The veterans insurance is not included? why?

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

@CantStopWontStop – it did not explain clearly why usd30 is included and itemized or std deduction is reqd.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

Its hard to make love with REG. He wanted to be pursuit.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

REG is driving me crazy! blow my mind every now and then! ha!

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

@Future Ninja interest on state tax refund is always be taxable,but state tax refund will be exclude if nothing is mention , butnif question says that state tax refund is due to item for which itemized deduction is claimed last year then the refund amount will be taxable to the extent claimed as itemized deduction.
This is what I understand ,correct me anyone if I am wrong.

[Anonymous]

^that's correct.

To keep it simple:

State tax refund: 1000
Prior year itemized deduction: 750

750 must be included in GI and the rest of 250 can be excluded

[Anonymous]

The veterans insurance is not included? why?
because interest on insurance dividend left on deposit with the department of veteran Affair is not taxable.This includes interest paid on dividend on converted united state government life insurance and on national service life insurance policies.

[Future Ninja]

@Ano @CantStopWontStop – thank you. i will take note of that.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

ok. so to summarize: please correct me if I'm wrong.

1.) federal tax refund = included in GI = taxable
2.) state tax refund = if used standard deduction = NOT included in GI = 0 taxable
3.) state tax refund = if used itemized deduction = included in GI = taxable up to the amount of I.D. = remaining balance is not taxable (excluded)

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Future Ninja]

tricky one for me:

In 2015, Joan accepted and received a $10,000 award for outstanding civic achievement. Joan was selected without any action on her part, and no future services are expected of her as a condition of receiving the award. What amount should Joan include in her 2015 gross income in connection with this award?

A. $0
B. $4,000
C. $5,000
D. $10,000

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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