Gross Income Exclusions and Inclusions

Introduction	401
Gifts and Inheritances	402
Life Insurance Proceeds	403
Endowment Policies	404
Gain on Surrender of Life Insurance Policies	405
Annuities – Introduction	406
General Rule	407
Employees’ Annuities	408
Special Simplified Rule for Certain Employee Annuities	408A
Interest Income – What Interest is Taxable	409
Interest on U.S. Obligations	410
New Exclusion for Savings Bond Interest	410A
Interest on State and Municipal Obligations	411
Interest-Free and Low Interest Loans	412
Exceptions	413
Dividend Income – What Dividends are Taxable	414
Stock Dividends	415
Return of Capital	416
Mutual Fund Dividends	417
Liquidating Dividends	418
Dividends on Insurance Policies	419
Disability Payments	420
Scholarships and Fellowships	421
Social Security Benefits	422
Welfare Benefits	423
Compensation for Damages – Accident and Health Insurance Reimbursement	424
Insurance Reimbursement for Extra Living Expenses	425
Unemployment Insurance Benefits	426
Income of U.S. Citizens from Sources Outside the U.S.	427
Conclusion	428

Early Attempts at Income Taxation	101
The Present Income Tax Law	102
Introduction – General Principles – Definitions	103
Classification of Taxpayers	104
Purpose of the Income Tax Return – Withholding and Estimated Tax	105
Accounting Period -The Taxable Year	106
Accounting Methods	107
The Cash Basis	108
The Accrual Basis	109
Change in Accounting Method	110
When to File the Income Tax Return	111
Penalties	112
Installment Payment of Tax	112A
Where and How To File Manual and Electronic Filing	113
Who Must File a Return	114
Joint Return of Husband & Wife	115
Separate Return of Husband & Wife	116
Who is considered as “Married”?	117
Special Provision for Married Persons Living Apart	118
Minors	119
The Tax Return Forms and Schedules	120
Payment of the Tax	121
Section II
Introduction	122
Gross Income	123
Deductions from Gross Income	124
Adjusted Gross Income	125
Deductions from Adjusted Gross Income	126
Taxable Income	127
Tax Credits	128
The Filing Requirements for Special Taxpayers	129

Syllabus

Introduction	401
Gifts and Inheritances	402
Life Insurance Proceeds	403
Endowment Policies	404
Gain on Surrender of Life Insurance Policies	405
Annuities – Introduction	406
General Rule	407
Employees’ Annuities	408
Special Simplified Rule for Certain Employee Annuities	408A
Interest Income – What Interest is Taxable	409
Interest on U.S. Obligations	410
New Exclusion for Savings Bond Interest	410A
Interest on State and Municipal Obligations	411
Interest-Free and Low Interest Loans	412
Exceptions	413
Dividend Income – What Dividends are Taxable	414
Stock Dividends	415
Return of Capital	416
Mutual Fund Dividends	417
Liquidating Dividends	418
Dividends on Insurance Policies	419
Disability Payments	420
Scholarships and Fellowships	421
Social Security Benefits	422
Welfare Benefits	423
Compensation for Damages – Accident and Health Insurance Reimbursement	424
Insurance Reimbursement for Extra Living Expenses	425
Unemployment Insurance Benefits	426
Income of U.S. Citizens from Sources Outside the U.S.	427
Conclusion	428

Early Attempts at Income Taxation	101
The Present Income Tax Law	102
Introduction – General Principles – Definitions	103
Classification of Taxpayers	104
Purpose of the Income Tax Return – Withholding and Estimated Tax	105
Accounting Period -The Taxable Year	106
Accounting Methods	107
The Cash Basis	108
The Accrual Basis	109
Change in Accounting Method	110
When to File the Income Tax Return	111
Penalties	112
Installment Payment of Tax	112A
Where and How To File Manual and Electronic Filing	113
Who Must File a Return	114
Joint Return of Husband & Wife	115
Separate Return of Husband & Wife	116
Who is considered as “Married”?	117
Special Provision for Married Persons Living Apart	118
Minors	119
The Tax Return Forms and Schedules	120
Payment of the Tax	121
Section II
Introduction	122
Gross Income	123
Deductions from Gross Income	124
Adjusted Gross Income	125
Deductions from Adjusted Gross Income	126
Taxable Income	127
Tax Credits	128
The Filing Requirements for Special Taxpayers	129