Activity #1 - Tax Planning

1.  Earned Income Credit 2.  American Opportunity Credit 3. Child and Dependent Care Tax Credit Please define these credits and let us know how individuals may benefit from these credits.

Personally Established Retirement Accounts These days, almost anyone can open personal, tax-sheltered retirement accounts whether or not they're enrolled in a plan at work. Terms and provisions vary among plans, so it pays to do some homework before deciding which is best for your circumstances and goals. To help you focus on the aspects of different plans, answer the following questions. Madeline is a sole proprietor. She wants to create a retirement plan that requires the least amount of setup and maintenance effort. What type of plan is Madeline most likely going to open? SEP-IRA О Кеogh Chun is a small-business owner. She wants to create a profit-sharing or money-purchase retirement plan. What type of plan is Chun most likely going to open? SEP-IRA О Кеogh Alison is 58 years old and opened a traditional IRA when she was 53. Alison earns less than $100,000 per year. Her contribution for this year is $7,000. This contribution is made entirely with: pretax dollars. O after-tax…

Give typing answer with explanation and conclusion . True or False: A Roth IRA is an employer-sponsored retirement account in which contributions are made with before-tax dollars, and your money grows tax-deferred until you make withdrawals in retirement.

Give one example of any retirement plans that individual taxpayers can contribute to towards their retirement year’s income. ___________

50. A taxpayer can claim their daughter who is a first year college student on their tax return is this in this expense that the taxpayer can claim as part of the American opportunity tax credit.   A meal plan fees    B. fees for dorm room   C. books required for the coursework   D. tuition

Basic Scenario 8: Zoe Watson Directions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of your choice. Interview Notes Zoe is single and 47 years old. • Zoe has two children. Yvonne, age 19, has a job and earned wages of $5,200. Joshua, age 26 is totally and permanently disabled and received Social Security benefits of $4,500. Both children lived with her all year. Zoe paid all the cost of keeping up the home and more than half the support for her children. • Zoe received disability pension benefits, but she has not reached the minimum retirement age of her employer's plan. • She does not have enough expenses to itemize for the 2023 tax year. Zoe, Yvonne, and Joshua are U .S. citizens and have valid Social Security numbers. They…

An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAs differ from TDAs in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks.When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equal amount to her IRA. That year and every year thereafter, she deposited $1,000 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased her annual deposit to $2,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 6.5% interest.If Shannon Pegnim had started her IRA at age 35 rather than age 14, how big of an annual contribution would she have had to have made to have the same amount saved at age 65? (Round your answer to the…

An Individual Retirement Account (IRA) is an annuity that is set up to save for retirement. IRAS differ from TDAS in that an IRA allows the participant to contribute money whenever he or she wants, whereas a TDA requires the participant to have a specific amount deducted from each of his or her paychecks. When Shannon Pegnim was 14, she got an after-school job at a local pet shop. Her parents told her that if she put some of her earnings into an IRA, they would contribute an equal amount to her IRA. That year and every year thereafter, she deposited $500 into her IRA. When she became 25 years old, her parents stopped contributing, but Shannon increased her annual deposit to $1,000 and continued depositing that amount annually until she retired at age 65. Her IRA paid 7.5% interest. Find the following. (Round your answers to the nearest cent.) (a) The future value of the account $ 519719.69 (b) Shannon's and her parents' total contributions to the account Shannon Shannon's parents (c)…

Which of the following do you not need to take into account when you retire? A) the cost of living in your city or state B) whether your money comes from active or passive income C) your monthly expenses D) how much you have saved in your retirement fund

22. Is the following correct concerning Roth Ira's    A. Contributions made to your Roth ira are made with after tax dollars.   B contribution made to Roth IRA are made with pre-tax dollars.   C. You can withdraw contributions made to your Roth IRA at any time tax and penalty free.

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Question 3 of 15. A taxpayer must file Form 8862 to claim certain credits after disallowance by the IRS. Which credit is affected by this requirement? Adoption Credit. Child and Dependent Care Credit. Earned Income Credit. Residential Energy Credit. Mark for follow up

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Which one(s) is/are true for RRSP? (There might be more than one answer).   Question 1 options:     The Home Buyers' Plan (HBP) is a tax-free withdrawal from an RRSP account for persons who are deemed to be first-time home buyers.  An eligible person is permitted to take an withdraw up to $35,000.00 from their RRSPs to purchase or construct a home for themselves.     The LLP student must be enrolled on a full-time basis at the educational institution. Students can not be enrolled on a part-time basis under any conditions.      Any contribution made to an RRSP within 89 days prior to the HBP request does not qualify to be part of the HBP program.     Up to $5000 net per year, over four years, up to a maximum of $20,000 net, can be redeemed per spouse for purposes of the LLP.

Please I will need help of question numbers 36- 40 Thank you