An Electrician Completes a Rewiring Job and Is Paid $1,000

question 84

Multiple Choice

An electrician completes a rewiring job and is paid $1,000 by the customer in November.The customer has a small fire in his house and sues the electrician for the repayment of the $1,000 fee plus damages in December.The electrician reaches a settlement with the customer in the following February and refunds the $1,000 fee.How should the electrician treat these events when he files his tax return in April?

• A)No income will be reported.
• B)The income will be reported for the year of receipt,and a tax deduction will be claimed on the tax return for the year of repayment.
• C)The income will be reported for the year of receipt,and then an amended return will be filed in the following year to claim the refund.
• D)Both the income and the deduction will be reported on the same tax return (for the year of receipt).

---

Definitions:

Immune System

The body’s system for fighting disease.

Fighting Disease

The process of preventing, combating, or managing diseases through various methods, including medical treatment, lifestyle changes, and public health initiatives.

Type D Personality

A personality type characterized by high levels of stress and negativity, often linked to adverse cardiovascular outcomes.

Psychotherapy

The treatment of mental disorder by psychological rather than medical means, involving conversation and interaction between a therapist and a client.