Discussion Question 4-4 (LO. 1, 4)
Hana lost her job in 2024 when her employer moved its plant. During the year, she collected unemployment benefits for three months, a total of $1,800. While she was waiting to hear from prospective employers, she painted her house. If Hana had paid someone else to paint her house, the cost would have been $3,000. The cost of the paint Hana used was $800.
What is Hana's 2024 gross income for tax purposes from the above events?
Hana
included in gross income because it an amount received from another.
recognize income from the unemployment benefits. Her savings from painting her house
zincome
•. This is because the savings
Therefore, Hana will report $
as income.