Asked by Nguyen Hien Minh Quan on May 12, 2024
Verified
Items that must be reported on line 21 (Other Income) of the Form 1040 include:
A) Wages.
B) Jury duty pay.
C) Capital gains.
D) Tax-exempt dividends.
Other Income
Earnings or receipts from sources other than a taxpayer's primary occupation, including but not limited to interest, dividends, and rental income.
Form 1040
The official form provided by the Internal Revenue Service (IRS) which is utilized by individuals to submit their yearly income tax returns.
Tax-Exempt Dividends
Dividends that are paid by investments in municipal bonds or certain mutual funds which are not subject to federal income tax.
- Recognize various income items and their reporting requirements on tax returns.
Verified Answer
FS
Fitri Soraya MarpaungMay 14, 2024
Final Answer :
B
Explanation :
Line 21 (Other Income) of Form 1040 should be used to report income that does not fit into any other category, such as jury duty pay, gambling winnings, and prizes. None of the other options listed (wages, capital gains, and tax-exempt dividends) should be reported on line 21.
Learning Objectives
- Recognize various income items and their reporting requirements on tax returns.