Chanelle is a single mother of 3-yearold twins. She is going to school andalso working part-time. She earns$18,000 in 2022. She also receives$2,000 per month in child support. Herchild care costs are $7,500 per year foreach child. How much can she deducton her 2022 tax return?$7,500$0, since the child supportexceeds the child care costs.$16,000$12,000$15,000

The Child Tax Credit helps families with qualifying children get a tax break. You may be able to…

Answered: Chanelle is a single mother of 3-year…

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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Similar questions

Your mother's employer offers a tax-deferred retirement plan (a 401-b plan, which was authorized by Congress to encourage savings) which would permit her to invest, tax-free until she retires, up to 15 percent of her salary. Once you are out of school (one year from today), she figures she can save $1,000 every 6 months, or $2,000 per year. The insurance company which manages the retirement fund promises to pay a stated (or simple) rate of 12 percent per year, but with quarterly compounding. If your mother invests $1,000 each six months, starting six months after you graduate (or 18 months from today), how much will she have 5 years from now, assuming the last payment is made at the end of Year 5? (Hint: She will make a total of 8 payments.) Group of answer choices $9,929 $12,300 $12,462 $9,897 $10,000
Tyler earns $80,000 per year and has a 22 percent marginal tax rate. His employer is willing to provide health insurance coverage for Tyler if he will agree to a salary reduction. The insurance will cost the employer $4,680. How much salary should Tyler be willing to forgo to receive the $4,680 in health insurance coverage?
My daughter earns a salary of $40,800 per year, payable monthly. She is married and claims four withholding allowances. What is her federal income tax? Gross monthly is $3400
Aliana & Alfonso have 4 children. Ricardo is 26, works full time, and lives in his own apartment. Maria is 20 and is a full-time college student supported by her parents. Eduardo is a 17-year-old high school student living at home. Isabella is a 6-month-old baby born in the current year. What is the total child tax credit amount they can take? A. $3,500 B. $6,000 C. $4,500 D. $3,000
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $50,000. She is trying to decide whether she should convert her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years, and she expects to earn a before-tax rate of return of 5 percent on her retirement accounts and a 4 percent after-tax rate of return on all investments outside of her retirement accounts. For each of the following alternative scenarios, indicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA into a Roth IRA. Be sure to include the opportunity cost of having to pay taxes on the conversion. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent. Accumulation if she keeps funds in traditional IRA ____________________ Accumulation if she converts…
Sahara is an enterprising young woman (age 14). Her math tutoring service will generate $8,400 this year. She has her prior taxed earnings ($7,500) invested in a convertible bond fund that will generate 5% interest and 6% capital gains this year. How much of her income is taxable?
1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate Single up to $9325 up to $37,950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption $4050 (per person) Married Filing Jointly up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 (b) What is Kevone's AGI? $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37,950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350…
Robert and Maisie have one child, Gillie (4). Both parents work full time, and their AGI in 2020 was $194,375. During the year, they paid $8,140 in childcare expenses for Gillie. Robert's employer has decided to offer a daycare flexible spending account (FSA) option for 2021. What would you recommend, and why? I n the end, either option is a good choice because they both reduce their tax. They can claim $5,000 on the FSA and then claim the remaining $3,140 against the Child and Dependent Care Credit. Therefore, Robert should open the FSA. Because their marginal tax rate + FICA tax is more than the Child and Dependent Care Credit percentage they would receive, the FSA is a better option. Robert should not open the FSA; since he would only be able to fund up to $5,000, it wouldn't cover all their expenses.
Joetta Hernandez is a single parent with two children and earns $67,500 a year. Her employer's group life insurance policy would pay 2.5 times her salary. She also has $90,000 saved in a 401(k) plan, $7,500 in mutualfunds, and a $4,500 certificate of deposit. She wants to purchase term life insurance for 15 years until her youngest child is self-supporting. She is not concerned about her outstanding mortgage, as the children would live with her sister in the event of Joetta's death. Assuming she can receive a 6 percent after-tax, after-inflation return on insurance proceeds, use the earnings multiple method to calculate her insurance need. How much more insurance does Joetta need to buy? What other information would you need to know to use the needs approach to calculate Joetta's insurance coverage? Assuming she can receive a 6% after-tax, after-inflation return on insurance proceeds and using the earnings multiple method, Joetta's insurance need is $_____
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $11,000 bill from her accountant for consulting services related to her small business. Reese can pay the $11,000 bill anytime before January 30 of next year without penalty. Assume Reese’s marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 5 percent on her investments. Required: What is the after-tax cost if she pays the $11,000 bill in December? What is the after-tax cost if she pays the $11,000 bill in January? Use Exhibit 3.1. Note: Round your answer to the nearest whole dollar amount. 3. Based on requirements a and b, should Reese pay the $11,000 bill in December or January? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.
Jon and Kate have 8 children. Their current year AGI is 200,000 and consists exclusively of earned income. They have $50,000 in childcare expenses If all of their kids are younger than age 17. Three of the children are younger than age 6. What is the maximum refundable portion of the child tax credit? O $12,800 O $25,800 O $4,000 $16,000

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