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- Simon Millstone is 48 years of age and has employment income of $81,000. His employer withheld the maximum Ei premium and CPP contribution. His wite, Candice, is 46 years old and has Net Income for Tax Purposes of $7,325, They have one child, Daisy, who is 11 years of age and has Income of $3,100. During the year, the family had eligible medical expenses of $2,050 for Simon, $1,950 for Candice and $500 for Daisy. Requirements: 1. Calculate Simon Millstone's minimum federal Tax Payable for 2020. Show your answer in good form with appropriate description of amounts. 2. Indicate any carry forward amount(s) available to him and his dependents and the carry forward provisions. For the toolbar, press ALTF10 (PC) or ALT+FN+F10 (Mac). B. Paragraph Arial 14pxLee is 30 years old and single. Lee paid all the costs of maintaining his household for the entire year. Determine Lee’s filing status in each of the following alternative situations: c. Lee is Ashton's uncle. Ashton is 22 years old and was a full-time student from January through April. Ashton's gross income was $5,000. Ashton lived in Lee's home from April 1 through the end of the year.Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. C Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) The amount that Ursula must include in income…
- Bruce is single and has adjusted gross income for the current year of $90,000 before any deduction for passive activity losses. He owns a duplex that he uses as rental property and this year his rental loss was $13,000. Bruce has no income from passive activities. Which of the following statements is true? Group of answer choices If Bruce actively participates in managing the rental property he can deduct the $13,000 loss against his other income. Bruce will not be able to deduct the $13,000 loss against his other income unless he materially participates in managing the property. Since Bruce’s income does not exceed $150,000 he can deduct the loss against his other income regardless of his role in managing the property. In no circumstance will Bruce be able to deduct the loss this year since he does not have any passive income.Jane sued her employer for age discrimination. She was awarded $5,000 to cover the medical bills she incurred because of related emotional distress, $20,000 to punish the employer for discrimination, and $10,000 to compensate her for lost wages. How much does Jane include in her taxable income?Smithers is a self-employed individual who earns $27,000 per year in self-employment income. Smithers pays $1,850 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI deduction and where the premiums are deductible. Please all parts including a,b,c, and d. The previous expert did nota. Smithers is single and the self-employment income is his only source of income(deductible as for AGI deduction only, deductible as an itemized deduction only. deductible as either a for AGI or itemeized deduction or not deductible)?Amount? b. Smithers is single, but besides being self-employed, Smithers is also employed part time by SF Power Corporation. This year Smithers elected not to participate in SF's health plan.(deductible as for AGI deduction only, deductible as an itemized deduction only. deductible as either a for AGI or itemeized…
- Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. a. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($55,800), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $5,000 in accrued salary that was paid to Darlene. c. Donald's employer had provided Donald with group term life insurance of $195,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $19,700 had been included in Donald's gross income under § 79. d. Donald had purchased a life insurance policy (premiums totaled $148,000) that paid $280,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $37,000 each year for a 23-year period. She…Suresh is a technician working with Melissa’s car repair centre. Due to a dangerous workplace accident, Suresh became seriously ill. Suresh received compensation of $131,000. The lump sum was divided into $57,000 loss of earnings, $43,000 loss of future earning capacity and $31,000 for pain and suffering. Based on legal provisions and case law, advise Suresh, will any of these amounts be assessable income? Furthermore, advise Suresh whether it would be better to accept a lesserBruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $56,000 per year. Green Corporation has an accountable reimbursement plan. During the year, Bruce has $5,000 of employee expenses. Green Corporation reimburses Bruce for only $4,000 of expenses.Bruce decides to put $5,500 into a Traditional IRA. Amanda owns a financial consulting firm as a sole proprietor (it qualifies as a full trade or business). Amanda generates $80,000 of revenues during the year. She has the following business payments associated with her firm:● Utilities: $2,000● Office Rent: $14,000● Self-Employment Tax: $5,000● Salary for her secretary: $20,000● Fines/Penalties: $8,000● Payroll Taxes (Employer Portion): $1,000● Business Meals: $2,000● Bribe to police officer to forgive parking violation $1,500Due to the income and expenses above, Amanda has $39,500 of Qualified Business Income. Also, during the year a tornado damaged the roof of their personal…
- Darrell (46) is unmarried. His mother, Marlene (81), lives in a nursing home. Darrell pays the entire cost of the nursing home and more than 50% of Marlene's total support. Darrell's wages were $77,000; Marlene's income consisted of $1,800 taxable interest and $9,600 social security benefits. What is Darrell's correct and most favorable 2019 filing status?Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. a. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($15,000), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $6,800 in accrued salary that was paid to Darlene. c. Donald's employer had provided Donald with group term life insurance of $255,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $13,200 had been included in Donald's gross income under § 79. d. Donald had purchased a life insurance policy (premiums totaled $162,000) that paid $427,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $31,000 each year for a 22-year period. She…Jeremy (unmarried) earned $100,300 in salary and $6,300 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,300 in itemized dedications, including $2,000 of charitable contributions to his church. -Determine Jeremy’s tax refund or taxes due. -Assume that in addition to the original facts, Jeremy had a long term capital gain of $5,050. What is Jeremy’s tax refund or tax due including the tax on the capital gain? -Assume the original facts except that Jeremy has only $7,000 in itemized deductions. Assume the charitable contribution deduction for non-itemized applies to 2022. What is Jeremy’s tax refund or tax due?
