Sandra directed her employer to withhold $500 of her wages each month for deposit to her mother's checking account. Which of the following concepts, constructs, or doctrines is the least helpful in determining how Sandra should report the arrangement for tax purposes?

Question

Quizplus · Accepted Answer

The ability-to-pay concept is not relevant in determining how Sandra should report the arrangement for tax purposes. This concept refers to the idea that taxpayers should pay taxes based on their ability to pay, which is not applicable to this situation. The other concepts listed are more relevant to determining how the arrangement should be reported for tax purposes. The Assignment of Income Doctrine determines who should report income when there is an assignment of income. The Claim of Right Doctrine determines the year in which income is taxable. The All-inclusive Income Concept requires taxpayers to report all income, including income received on behalf of another person. The Constructive Receipt Doctrine requires taxpayers to report income in the year it is credited to their account, even if it is not physically received.

Sandra Directed Her Employer to Withhold $500 of Her Wages