Question :
Betty Jones files a return as a single taxpayer. Items of income received by Betty in 2011 were as given.
Interest on savings account with Bank of America: $100
Interest on state income tax refund: $50
Gambling winnings: $4,800
Dividends from mutual life insurance company on life insurance policy: $1,000
Dividends from Better Auto Co. received on January 2, 2011: $875
The net dividends received on the life insurance policy do not exceed the aggregate of the premiums paid to the company.
(a) How much could Betty include in her 2011 taxable income as interest?
(b) How much could Betty report as dividend income for 2011?
(c) How much could Betty include in taxable "Other Income" for her state lottery winnings?