How much of the lump-sum death payment is taxable

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Question -

Q1. Permanent adjustments on Schedule M-1 (Form 1065) include:

A. Depreciation, amortization, and depletion.

B. Government penalties paid, political expenses, and 50% of deductible meals.

C. Political expenses, depreciation, and 50% of deductible meals.

D. 50% of meals and 100% of entertainment, depletion, and government penalties paid.

Q2. Elaina, a 57-year-old widow, lost her husband in 2019. He was an active FERS employee, and his FERS contributions totaled $27,000 at the time of his death. Elaina is entitled to receive a survivor annuity. She is also entitled to receive a special FERS death benefit of $9,000, which she elected to receive in a lump sum in 2019. How much of the lump-sum death payment is taxable?

A. $4,500

B. $6,000

C. $9,000

Reference no: EM132596473

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