How much income must terry report from the payment

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Question: 1a. In 2016, what rate would a taxpayer pay on qualified dividend income:

a. If in the 33 percent bracket?

b. If in the 10 percent bracket?

1b. Sam died on January 15, 2006 and left his wife, Terry, an insurance policy with a face value of $100,000. Terry elected to receive the proceeds over a 10-year period ($10,000 plus interest each year). This year, Terry receives $11,500 ($10,000 proceeds plus $1,500 interest) from the insurance company. How much income must Terry report from this payment?

1c. Nicole is a student at USB Law School; she receives a $52,000 scholarship for 2016. Of the $52,000, $40,000 is used for tuition, $5,000 is used for books, and $7,000 is used for room and board. How much of the scholarship is excluded from taxable income for Nicole in 2016?

Reference no: EM131922959

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