Question

Jerome, who files as head of household, received the following income: Wages (box 1 of Form W-2) $50,000; Interest income $1,000; Christmas ham (FMV) $22; and DCB, box 10 of Form W-2 $2,000 (Spent $1,500 for childcare). How much gross income must Jerome report?

Answer 1

$51,022

Step-by-step explanation:

Gross income is the aggregate of wages income, interest income, and FMV only.

Given that,

Wages (box 1 of Form W-2) = $50,000;

Interest income = $1,000;

Christmas ham (FMV) = $22;

DCB, box 10 of Form W-2 = $2,000 (Spent $1,500 for childcare)

Gross income:

= Wages + Interest + FMV

= 50,000 + 1,000 + 22

= $51,022

Therefore, the gross income must Jerome report is $51,022.