Examples of income which are constructively received include all of the following except
A)interest credited to a savings account.
B)a check received after banking hours.
C)a paycheck received from employer,when employer does not have funds in the bank to cover the check.
D)dividends automatically reinvested in additional shares of the mutual fund.

Question

Quizplus · Accepted Answer

Constructively received income refers to income that is available to the taxpayer even if they have not physically received it. Option A, B, and D all refer to scenarios where the taxpayer has access to the income, even if it has not been physically received. However, option C refers to a scenario where the paycheck cannot be deposited immediately since the employer does not have sufficient funds, so it cannot be considered constructively received income.

Examples of Income Which Are Constructively Received Include All of the Following