44. A taxpayer has a son who the taxpayer claims as a dependent and who attended college the past year while in college the son took out several qualifies student loan all of which were solely in his name and 2023 the taxpayer may interest payment for him a $1,256 to a bank A and 523 to a credit union additionally the taxpayer son made an interest payment of $453 to bank B is this how much the taxpayers able to duck on their 2023 US federal tax return. A. Since the loan is in the name of the dependent son only the taxpayer cannot deduct any other student loan interest payment in 2023. true or false B 1,179

44. A taxpayer has a son who the taxpayer claims as a dependent and who attended college the past year while in college the son took out several qualifies student loan all of which were solely in his name and 2023 the taxpayer may interest payment for him a $1,256 to a bank A and 523 to a credit union additionally the taxpayer son made an interest payment of $453 to bank B is this how much the taxpayers able to duck on their 2023 US federal tax return. A. Since the loan is in the name of the dependent son only the taxpayer cannot deduct any other student loan interest payment in 2023. true or false B 1,179

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 20DQ

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Marlene, a cash basis taxpayer, invests in Series EE U.S. government savings bonds and bank certificates of deposit (CDs). Determine the tax consequences of the following on her 2019 gross income: a. On September 30, 2019, she cashed in Series EE bonds for 10,000. She purchased the bonds in 2009 for 7,090. The yield to maturity on the bonds was 3.5%. b. On July 1, 2018, she purchased a CD for 10,000. The CD matures on June 30, 2020, and will pay 10,816, thus yielding a 4% annual return. c. On July 1, 2019, she purchased a CD for 10,000. The maturity date on the CD was June 30, 2020, when Marlene would receive 10,300.
Which of the following would preclude a taxpayer from deducting student loan interest expense? a. The total amount paid is 1,000. b. The taxpayer is single with AGI of 55,000. c. The taxpayer is married filing jointly with AGI of 120,000. d. The taxpayer is taken as a dependent of another taxpayer.
Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.
Which of the following items are exclusions from gross income? a. Alimony payments received (relates to a divorce settlement in 2016). b. Damages award received by the taxpayer for personal physical injurynone were for punitive damages. c. A new golf cart won in a church raffle. d. Amount collected on a loan previously made to a college friend. e. Insurance proceeds paid to the taxpayer on the death of her uncleshe was the designated beneficiary under the policy. f. Interest income on City of Chicago bonds. g. Jury duty fees. h. Stolen funds the taxpayer had collected for a local food bank drive. i. Reward paid by the IRS for information provided that led to the conviction of the taxpayers former employer for tax evasion. j. An envelope containing 8,000 found (and unclaimed) by the taxpayer in a bus station.
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20.A taxpayer certificate of deposit that was set to mature the end of next year is needed for a down payment on their residence the taxpayer decided to cash out the certificate of deposit now is the following scenario accurate. A. The taxpayer must report their total amount of interest and can deduct the penalty on their tax return. B. The total interest income of $1,600 and a taxpayer early withdrawal penalty is $300 the taxpayer net the two amount together and report $1300 interest on a schedule B. C. Both the total interest amount in the early withdrawal penalties are reported to the taxpayer on form 1099-INT.
United States Tax Law: Taxpayer has mortgage interest on a $1,000,000 loan of $20,000. This is on his primary residence. The loan was incurred in 2022. What is his mortgage interest deduction?
This is US Tax and Law
Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amount
Save & Ex Chec Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543. He is a supervisor and his 2020 W2 shows gross wages of $94,850 with $5,881 of social security and $1,375 of Medicare taxes withheld. He has $14,500 of federal withholding and $2,595 in state withholding. Jorge does not itemize. He had the following stock transactions for the year: Stock Date Shares Purchased Date Sold Sale Price Cost Basis 5,500 7/8/19 $ 15,000 43,000 30,000 9/12/20 $ 18,000 800 3/12/20 10/21/20 47,000 22,000 2,800 2/13/13 10/21/20 He also has interest from a savings account with Local Neighborhood Bank of $250 and a dividend from a Form 1099-DIV of $1,600 in ordinary dividends received from ABC brokerage, of which $1,350 are considered qualified dividends. ces Required: Prepare a 2020 Form 1040 for…
Required information [The following information applies to the questions displayed below.] In 2021, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) b. Elaine's AGI is $168,000. American opportunity tax credit
47. Is this a requirement for a taxpayer to be eligible for the earned income tax credit for the tax year 2023. A. A taxpayer must have been a US citizen or resident alien for the entire tax year. B. A taxpayer has been a US citizen or residential alien with 6 months of the year. C. Attacked her only has investment and retirement income to report.