Aaron, age 55, has an adjusted gross income in 2014 of $30,000. Hisexpenses are as follows:Non-prescription medicine $100Prescription medicine $500Doctor visits $500Weekly meal preparation for a diet plan $2,000Removal of a benign facial mole $400Contact lenses $500Eyeglasses $200Dental services $300What is Aaron's itemized deduction for medical expenses?a. $2,000b. $4,500c. $1,500d. $0During 2015, John, a self-employed individual, paid the followingamounts:Real estate tax on Michigan residence $3,800State income tax 1,800Real estate taxes on land in Puerto Rico (held as an investment) 1,100Gift tax paid on gift to daughter 1,200State sales taxes 1,750State occupational license fee 300Property tax on value of his automobile (used 100% for business) 500What is the maximum amount John can claim as taxes in itemizingdeductions from AGI?a. $6,650b. $7,850c. $6,700d. $8,625

Part 1: Aaron's Itemized Deduction for Medical ExpensesAnswer:The correct answer is c. $1,500 Part…

Answered: Aaron, age 55, has an adjusted gross…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income. b.Robert must claim the $1,200 premium paid by his employer as income. c.Robert must claim the $6,800 paid by the insurance company for the operation as income. d.None of these events are taxable on his 2021 return. 2. Electronically filed tax returns: a.Have error rates similar to paper returns. b.Offer faster refunds than paper returns. c.May not be transmitted from a taxpayer's home computer. d.Constitute less than 50 percent of the returns filed with the IRS. 3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of…
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Martha incurred medical and dental expenses in 2020 for herself, her husband, Terry and her six year-old daughter, Sophia as follows: Medical/Dental Cost Net Income Martha $3,500 $132,000 Terry (spouse) 2,200 70,000 Sophia (child under 18) 800 According to the T1 Guide, either spouse can claim the medical expenses. Which spouse should claim the medical expense credit to receive the maximum amount? Type either Martha or Terry in the space provided. What is the maximum federal medical expense tax credit that can be claimed in 2020? Do not add commas or dollar signs to your answers. Round to the nearest whole number.
Dave Collins and Christie Collins have two children, Ben, age 14, and Cody, age 20. The medical expenses and net income for each member of the family for 2022 is as follows: Medical expenses Net income Aras $ 2,000 $100,000 Kelly 3,000 40,000 Ben 600 500 Cody 12,000 9,000 All of the medical expenses were paid by Aras in the 12-month period ending December 31. Determine the maximum medical expense credit for 2022.
Right answer
Wai Yeung is a self-employed insurance Salesperson. She started her business on January 1, 2022, and ended her first taxation year on December 31, 2022. On July 1, she purchased a car for $36,000 plus 13% HST. The car is financed with a bank loan and interest costs amounted to $1,970 from July 1 to December 31. Wai incurred the following additional expenses relating to her automobile: Repairs and maintenance $ 400 Insurance 1,200 Gasoline 1,900 Parking while on business 500 During the period, Wai drove 16,000 Km, of which 12,000 Km were for business. Assume the car is not designated as immediate expensing property. Required: Complete the table below to answer the following questions. a. Determine the maximum amount that Wai can deduct from her business income for tax purposes in 2022. Show expenses as negative numbers. b. Calculate the maximum CCA that Wai can deduct in 2023 and 2024, assuming that business kilometres driven and total kilometres driven both remain constant and that she…
John Jay, 45, is married and supports his mother, age 67. During 2019, he paid $1,300 for prescription medicines for his mother (who is his dependent), $1,000 for prescription medicines for his wife (age 43), and $5,400 for doctor and hospital bills for himself. His gross income is $55,000 and his adjusted gross income is $50,000. In itemizing his deductions, Jay may claim a medical expense deduction, after application of proper limitations, of: a, 3,950 b, 7,700 c, 1,575 d, 2,700 e, none of the above
Michelle paid dental and doctor bills of $20,000 in 2022. Her AGI was $100,000 and she is 50 years old. How much can Michelle claim in medical and dental expenses on Line 4, Schedule A, for tax Year 2022? $12,000 $10,000 $6,250 $7,555 $12.500
Carol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 8. The over the counter sinus medication is a qualified medical expense for HSApurposes. True False
Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl 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. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.
Glenda is 71 years old and lives in a retirement home. She paid a total of $9,000 in attendant care fees, which she decided to claim as a medical expense. Form T2201 is certified by the CRA. How much can Glenda claim on Line 31600? gha $0 $130 $8,870 $9,000
Malcolm and Megan Johnson are both over age 65, married and are filing a joint tax return for 2020. The joint Social Security is 644-47-7833. The couple has AGI of $ 28,108 for 2020 and provided the following information all which can be verified for 2020: Medical related expenses: Medical insurance premiums $ 1,200 Premiums in insurance policy that pays $100 per day for each day that Megan is hospitalized 400 Medical care and lodging 80 Hospital bills 2,200 Doctor bills 750 Dentist bills 240 Prescription drugs and medicines 360 Over-the-counter medicines 510 Marriage counseling 400 The couple drove 90 miles for medial transportation and their insurance reimbursed them $850 for the above expenses. Taxes related expenses: Megan’s employer withheld State income tax $ 3,400 Megan paid additional state income tax for 2019 600 Real estate taxes on home 2,100 Personal property taxes based on home value 130 State gasoline taxes 80 General sales tax for the year 1,200 Federal income taxes…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS