2. LO 7.3Calculate the amount of the child and dependent care credit allowed before anytax liability limitations or other credits for 2019 in each of the following cases,assuming the taxpayers had no income other than the stated amounts.1. William and Carla file a joint tax return. Carla earned $27,500 during the year,while William attended law school full-time for 9 months and earned no income.They paid $3,500 for the care of their 3-year-old child, Carl.$2. Raymond and Michele file a joint tax return. Raymond earned $32,500 during theyear, while Michele earned $9,000 for the year from a part-time job. They paid$7,000 for the care of their two children under age 13.$3. Beth is a single taxpayer who has two dependent children under age 5. Bethearned $25,500 in wages during the year and paid $6,700 for the care of herchildren.

The Child & Dependent Care Credit, provided by the IRS, is a financial relief for taxpayers…

Answered: 2. LO 7.3 Calculate the amount of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2.
Answer the following questions: Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $450 per month. (a) How much of each $700 payment may be deducted as alimony by Joan? (b) How much of each $700 payment must be included in Bill’s taxable income? ____________________ (c) How much would be deductible/included if the divorce agreement were dated 2021?
In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs.What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.) a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages.
15. From the following information determine the total 2020 tax due for Gracelyn and Jason Baxter, assuming they file a joint return, have three dependents all under the age of 8, and are not members of a qualified retirement plan: Jason's Wages $ 76,000 Gracelyn's Wages $ 42,000 Jason's IRA Contribution $ 3,000 Gracelyn's IRA Contribution $ 3,000 Gracelyn's Self Employment Income from Etsy $ 77,000 Tax Preference Items $ 50,000 General Business Credit $ 6,000 Primary Residence Mortgage Interest $ 18,000 Property Taxes $ 12,000 What is the total tax due?
4. Sandi, files her 2020 taxes as head of household taking her two children, ages 14 and 11, as dependents. Her 2020 wages were $95,000. Her divorce was finalized in 2019 and per the settlement she is required to pay $1,500 of alimony per month to her ex-spouse. She has taxable interest income of $2,000, qualified dividends of $12,000 and a long-term capital gain on stocks she sold in 2020 of $10,000. In addition, on December 31, 2020 she sold her residence for $400,000. She had purchased the house in June of 2017 for $225,000 and has lived in it since. Compute Sandi's taxable income and income tax liability for 2020?
For each situation listed indicate the amount to be included in income for current year. The federal interest rate of 5.5% is in effect. Linda collected $42,000 on a life insurance policy from her husband, Leon's death. The insurance policy was provided by Leon's employer, and the premiums were excluded from Leon's gross income as group term life insurance. The policy face value was $40,000.
Jasmine 29 is filing as a single tax payer in 2020 she recieve income from the following sources 39000 wages Alimony payment totaling 14328 her divorce was finalize in October 2019 Unemployment compensation of 6200 Jasmine also made a timely 2000 contribution to a traditional ira for 2020 She has no other income and will file a standard deduction What is Jasmine adjustable gross ? income
Please explain every step. Thank you
In 2019, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy’s medical expense deduction.
Question 27 of 50. Mark and Carrie are married, and they will file a joint return. They both work full-time, and their 2021 income totaled $89,000, all from wages. They have one dependent child, Aubrey (5). During the year, they spent $9,000 for Aubrey's child care. Neither Mark nor Carrie received any dependent care benefits from their employer. What amount may they use to calculate the Child and Dependent Care Credit? $0 $3,000 $8,000 $9,000 Mark for follow up
The Tax Formula for Individuals, A Brief Overview of Capital Gains and Losses (LO 1.3, 1.9) In 2020, Manon earns wages of $54,000. She also has dividend income of $2,800. Manon is single and has no dependents. During the year, Manon sold silver coins held as an investment for a $7,000 loss. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 Calculate the following amounts for Manon: a. Adjusted gross income $fill in the blank b. Standard deduction $fill in the blank c. Taxable income $fill in the blank
Single-Schedule X If taxable income is: Over- $ 0 income is: Over- $ 0 But not over- $ 11,000 ........10% 11,000 44,725 $ 1,100.00 +12% 44,725 95,375 5,147.00 +22% 95,375 182,100 16,290.00 +24% 182,100 231,250 37,104.00+ 32% 231,250 578,125. 52,832.00+ 35% 578,125 174,238.25 + 37% Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable 22,000 89,450 190,750 364,200 462,500 693,750 ....... But not over- The tax is: $ 22,000 89,450 190,750 364,200 462,500 693,750 The tax is: of the amount over- ........10% $ 2,200.00 + 12% 10,294.00 +22% 32,580.00 + 24% 74,208.00+ 32% 105,664.00+ 35% 186,601.50+ 37% $ 0 11,000 44,725 95,375 182,100 231,250 578,125 of the amount over- 0 22,000 89,450 190,750 364,200 462,500 693,750 Head of household-Schedule Z If taxable income is: Over- $ 0 If taxable income is: Over- $ 0 But not over- 10% 15,700 $ 1,570.00+ 12% 59,850 6,868.00 +22% 95,350 14,678.00 +24% 182,100 35,498.00+ 32% 231,250 51,226.00+ 35% 578,100 172,623.50 + 37% Married filing…

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