accounting discussion questions (short answer)

I don’t know how to handle this Accounting question and need guidance.

answer the question below, and reply 2 students’ answers.

Discuss the numerous ways our government includes income in taxation and excludes income from taxation.

student 1 :

As a general rule of thumb, if you receive money, our government will tax you on the money you receive with a few exceptions. Some, but not all, ways the government taxes our income include wages, salaries, tips, bonuses, severance, commission, interest, dividends, unemployment compensation, jury pay, bank incentives, alimony, recognized capital gains, rental income, royalties, social security benefits, prizes, awards, gambling winnings, sholarships, grants, etc. Some forms of income that are not taxable include gifts (recipient), life insurance proceeds, child support, welfare payments, etc.

student 2:

The government loves to tax us. They will take a sizable portion of out gross income and take out any deductions we qualify for. The taxable income includes things like our salaries, tips, bonuses, commission, alimony, prizes, awards, and income from investments to name a few. There are a few items that are not taxes such as receiving gifts (under a certain amount) , some scholarships (excluding room and board), child support, and other items similar to these.