Alex is single and has no dependents. He is self-employed and his gross income is $150,000. He pays $10,000 for medicalinsurance for himself. He also incurs $40,000 in doctor bills during the year that are not covered by his insurance. And hedonates $12,000 to charity. (Pretend there are no other deductions -- no QBI deduction and no deduction for self-employment taxes.) Taking into account the 10%-of-AGI floor that applies to medical expenses, what is Alex's taxableincome?$88,000.O $102.000.$103.000.$137,600.

Taxable income refers to the portion of an individual's or entity's income that is subject to…

Answered: Alex is single and has no dependents.…

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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During the current tax year, Doug incurs the following deductible expenses: State Income Tax $2,300 Local Property Tax $3,000 Medical Expenses $ 800 Charitable Contributions $2,000 Doug is 33, single with no dependents. His has $35,000 AGI for the year. What is the amount of Doug's taxable income.
Arnie is single and receives Social Security beneifits. His modified AGI is $27,000 and his Social Security benefits are $7,200 per year. How much of his Social Security benefits are taxable?
Charlie's regular tax liability is $43,695. His tentative minimum tax is $58,304. He doesn't have any tax credits. What is the amount of Charlie's alternative minimum tax (AMT) and how much will he actually pay in tax for the current year?
Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018, Junior generated wage income of $17,000. Junior is not a dependent of Donald and Junior’s 2018 tax liability is $500. Donald is considering gifting Junior some funds if he agrees to contribute the gift to an IRA in 2018. What is the maximum amount Donald can give that will not exceed Junior’s maximum Saver’s Credit in 2018? $_______________________
ed Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $69,800. Meg works part time at the same university. She earns $43,200 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) Note: Round your final answers to the nearest whole dollar amount. b. What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year? Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses $ 1,600 0 13,040 (10,100) Total tax liability $ 9,975 X
s
Marisa is 16 years old and a dependent of her parents. She earned $5,000 of income from wages working at Crave Ice Cream Shop and has $3,000 of interest income from corporate bonds. Which of the following statements are true? She is not subject to kiddie tax because she has earned income. She is subject to kiddie tax on both her earned and unearned income. Her unearned income over $2,200 is taxed at her parents’ tax rates. Her earned income over $2,200 is taxed at her parents' tax rates. Her earned income is taxed at her rates. All $3,000 of her investment income is subject to tax at her parents’ tax rates. Group of answer choices I only None of these options II only III and IV V only III and V
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Mortgage interest Property taxes $7,925 2,760 Insurance 2,950 TULE Repairs & maintenance 1,875 Utilities 4,400 16,875 Depreciation Ce During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources of passive income. (Leave no answer blank. Enter zero if applicable.) What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property. AGI 1.01 increases by decreases by no effect
Use the personal allowance table below. Personal Allowance Amount Single $2,000 Married 4,000 Each Dependent 2,000
Sam and Margaret are 62 and 59 respectively. They are married, lived together all year, but prefer to file taxes separately. Both work and each have a traditional IRA. Sam is mostly retired but Margaret works full-time. In 2022, Sam earned $4,500 in wages from working at Walmart as a Greeter. He also received $29,000 in annuity income. Margaret earned $65,000 in wages. What is the maximum Sam can contribute to his IRA?
Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home pay of $499.00 this week, how much would her employer take from her to satisfy part of the tax levy?
Frankie lives in NJ, is divorced with one child, and made $80,000 last year. He qualified for several below the line, itemizable deductions (He paid $5,600 in mortgage interest, $9,500 in property taxes, and he donated $550 worth to charity during the year). Frankie can claim one child tax credit of $2,000. His ex-spouse agreed that he can claim head of household this year. Use the Income Tax Table Reference Sheet to answer the following questions. 1. Should Frankie itemize his taxes or take the standard deduction? * A. Itemize B. Standard Please answer very soon will give rating surely

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