Christine is a full-time fourth-grade teacher at Vireo Academy. During the current year, she spends $1,400 for classroom supplies. On thesubmission of adequate substantiation, Vireo reimburses her for $500 of these expenses-the maximum reimbursement allowed forsupplies under school policy. [The reimbursement is not shown as income (Box 1) of Form W-2 given to Christine by Vireo.]a. What are the income tax consequences of the $1,400, if Christine chooses to itemize her deductions from AGI?She can claim the educator's deduction in the amount ofan employee business expense which isAGI andISb. What are the income tax consequences of the $1,400, if Christine claims the standard deduction?She can claim the educator's deduction in the amount ofAGI.

Solution:-aThe following are the income tax consequences of the $1,400 if Christine chooses to…

Answered: Christine is a full-time fourth-grade…

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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Edward is attending school and had a financial emergency. He contacted his school's financial aid office and asked about a subsidized student loan, Edward's school facilitates these loans and determined that Edward qualifies for a $270 loan. Edward is able to repay the loan over the next 12 months while he is still in school. How much interest will Edward pay on this loan? O $0 because interest on subsidized loans does not accrue until Edward stops attending school. O $13.50 because the interest rate is 5%. O $6.75 because Edward has been making payments on the loan. None of the answer choices are correct.
Melissa is a fourth-grade teacher who works 1,500 hours during the tax year. She spend $300 on supplies for her students. Of that amount $275 was for educational software. The other $25 was for supplies for a unit she teaches on reproductive health. What is the qualified expense that she can deduct on her taxes? $300, $0, $275, $25
27. Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: a) Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $3,600 to provide coverage for himself and Wanda (not through an exchange). b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation. Page 6-37 c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her pay. d) Clem paid $45 to rent a safety deposit box to store his coin collection. Clem has collected coins intermittently since he was a…
Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures related to Todd's support: Auto insurance premiums $ 1,700 Room and board at Todd’s school 2,200 Health insurance premiums (not through an exchange) 600 Travel (to and from school) 350 What amount can Ned include in his itemized deductions?
Moose received a Form W-2 for $60,000 which showed his federal income tax withheld amount was $7,000. Suzie has a residential rental property (cost basis $270,000) which was rented for the whole year for $2,000 per month. Property taxes on the residential rental property: $3,700 and property insurance: $1,785. Suzie spent $500 fixing the sprinklings system and $5,000 for a new roof after a hailstorm. Moose got lucky and won $4,000 gambling on a trip to Las Vegas. Suzie sold her old car for $4,000. She had originally paid $8,000 for it. She also sold a parcel of land for $7,500 on March 7, 2022. She purchased it on January 5th of 2000 for $5,000. What is the taxable income?
Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary). Child and dependent care credit
In each of the following independent situations, determine how much, if any, qualifies as a deduction for AGI under § 222 (qualified tuition and related expenses). If an amount is zero, enter "0". Click here to access Exhibit 9.1 Limitations for Qualified Tuition Deduction. a. Lily is single and is employed as an architect. During 2020, she spends $4,100 in tuition to attend law school at night. Her modified AGI (MAGI) is $64,000. How much is her deduction for AGI under § 222 (qualified tuition and related expenses)? b. Liam is single and is employed as a pharmacist. During 2020, he spends $2,400 ($2,100 for tuition and $300 for books) to take a course in herbal supplements at a local university. His MAGI is $81,000. How much is his deduction for AGI under § 222 (qualified tuition and related expenses)? c. Hailey is married and is employed as a bookkeeper. She spends $5,200 for tuition and $900 for books and supplies in her pursuit of a bachelor's degree in accounting. Her MAGI is…
Tammy teaches elementary school history for the Metro School District. In 2020 she has incurred the following expenses associated with her job: Noncredit correspondence course on history $900 Teaching cases for classroom use $1,800 Tammy’s employer does not provide any funding for the correspondence course or teaching cases. Identify the amount and type (for AGI or from AGI) of deductible expenses.
Betsy is single and attended university full-time for 4 months in 2021. Her tuition for the year was $2,100 and her campus living expenses were $5,000 she also paid $1,300 for books. Besty’s income for the year was a scholarship from the university for $2,000 and $16,500 from part time job. from her emplacement income, $260.70 was withheld for EI and $708.50 for CPP ($65.00 in line 2215, $643.50 in line 30800) the only other non-refundable credit she can claim is the canada employment amount. How much of the tuision fees muct Betsy claim on her own return to reduce her federal tax to zero , and how much can she trasfier to her grandfather? A) Line 32300-$2,100.00- no transfer B) Line 32300-$1,965.80- transfer -$134.20 C) Line 32300- $0.00- transfer -$2,100.00 D) Line 32300- $465.80- transfer - $1,634.20
Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year. How much of this payment can Mason deduct as student loan interest if he files single and reports modified AGI of $81,400? $1,900. $3,116. $984. $600.
2. Lee 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: Filing Status Lee is Ashton's uncle. Ashton is 15 years old and has gross income of $5,000. Ashton lived in Lee's home from April 1 through the end of the year. Lee is Ashton's uncle. Ashton is 20 years old, not a full-time student, and has gross income of $7,000. Ashton lived in Lee's home from April 1 through the end of the year. 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. Lee is Ashton's cousin. Ashton is 18 years old, has gross income of $3,000, and is not a full-time student. Ashton lived in Lee's home from April 1 through the end of the year.
Henry Quincy wants to withdraw $30,000 each year for 10 years from a fund that earns 8% interest. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately?

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