eBookPrint ItemProblem 3-46 (LO. 1, 3, 7)Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their joint return (no qualified dividends orcapital gains). During 2022, Paige earned $3,900 pet sitting and $4,300 in interest on a savings account.Click here to access the 2022 tax rate schedule.What are Paige's taxable income and tax liability for 20227a. Paige's total taxable income isb. Paige's tax liability is sO

A person who depends on another person for financial assistance is considered dependent. Children…

Answered: Problem 3-46 (LO. 1, 3, 7) Paige, age…

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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Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions. Please use Microsoft Excel using functions and formulas as appropriate.
In each of the following situations, determine whether the taxpayer(s) has/have a dependent and if so, the total amount of the child tax credit and other dependent credit for 2021 (assuming no advance payments or limitations apply). If an amount is zero, enter "0". Dependent? Amount of credit (Yes/No) a. Donna, a 20-year-old single taxpayer, supports her mother, who lives in her own Yes home. Her mother has income of $1,350. b. William, age 43, and Mary, age 45, are married and support William's 19-year-old sister, who is not a student. The sister's income from a part-time job is $4,300. No c. Devi was divorced in 2019 and receives child support of $250 per month from her ex- Yes husband for the support of their 8-year-old son, John, who lives with her. Devi is 45 and provides more than half of her son's support. d. Wendell, an 89-year-old single taxpayer, supports his son, who is 67 years old, lives Yes with him and earns no income. e. Wilma, age 65, and Morris, age 66, are married.…
Required information [The following information applies to the questions displayed below.] In 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $500,000 (married filing jointly). Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule. Dividends and Capital Gains Tax Rates for reference. (Leave no answer blank. Enter zero if applicable.) a. She received $7,500 from a part-time job. This was her only source of income. She is 16 years old at year-end. Tax liability $
18. Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During 2022, Rex earned a salary of $27,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is: a.$0. b.$5,840. c.$5,903. d.$6,164.
Question in Accounting Description In 2020, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable income of $500,000 (married filing jointly). Sheryl did not provide more than half her own support. a. What is Sheryl's tax liability for the year in each of the following alternative circumstances? b. She received $5,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end. c. She received $5,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. Tax liability d. She received $5,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end. (Round your final answer to 2 decimal places.) Tax liability
1. Mary is age 33 and a single taxpayer with adjusted gross income for 2018 of $29,400. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2018 income tax return: a. Mary's standard or itemized deduction amount b. Mary's taxable income 2. Steven, age 35 and single, is a commodities broker. His salary for 2018 is $111,500 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents. a. What is the amount of his adjusted gross income? b. What are his allowable itemized deductions? c. What is his deduction for personal exemptions? d. What is his taxable income? e. What is his regular tax liability from the tax rate schedules?
Qualifying Dependents (LO 1.6) In each of the following situations, determine whether the taxpayer(s) has/have a dependent and if so, the total amount of the child tax credit and other dependent credit for 2021 (assuming no advance payments or limitations apply). If an amount is zero, enter "0" a. Donna, a 20-year-old single taxpayer, supports her mother, who lives in her own home. Her mother has income of $1,350. b. William, age 43, and Mary, age 45, are married and support William's 19-year- old sister, who is not a student. The sister's income from a part-time job is $4,300, c. Devi was divorced in 2019 and receives child support of $250 per month from her ex-husband for the support of their 8-year-old son, John, who lives with her. Devi is 45 and provides more than half of her son's support. d. Wendell, an 89-year-old single taxpayer, supports his son, who is 67 years old, lives with him and earns no income. e. Wilma, age 65, and Morris, age 66, are married. They file a joint…
Joyce, a single parent, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2023. She uses the standard deduction and files as a head of household. Round all computations to the nearest dollar. Click to access Earned Income Credit and Phaseout Percentages Table and the Tax Rates Schedules. a. Calculate the amount, if any, of Joyce's earned income credit. 2,696 X b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be $40,400; however, she is afraid she will not qualify for the earned income credit. Determine the increase or decrease in Joyce's net cash flow if she accepts the new job. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis. Use the Tax Rate Schedule when computing her income tax. Tax calculation: Salary Less: Standard deduction Taxable income…
Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,400 before considering their Social Security benefits, no tax-exempt interest, and $13,790 of Social Security benefits. As a result, $ of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted gross income of $15,800 before considering their Social Security benefits, no tax-exempt interest, and $17,380 of Social Security benefits. As a result, $ 8,490 X of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $104,500 before considering their Social Security benefits, no tax-exempt interest, and $15,675 of Social Security benefits. As a result, 96,338 X of the Social Security benefits are taxable.
The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7) Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $80,000 and they had interest income of $1,900. Diego and Dolores' deductions for adjusted gross income amounted to $6,100; their itemized deductions were $10,050, and they have no dependents. Filing Status 2018 Standard Deduction Single $ 12,000 Married, filing jointly 24,000 Married, filing separately 12,000 Head of household 18,000 Qualifying widow(er) 24,000 What is the amount of their adjusted gross income? In order to minimize taxable income, Diego and Dolores will take the standard deductionin the amount of $. What is the amount of their taxable income? $ What is their tax liability for 2018? $
In 2019, Cheryl, who is single and not a dependent of another taxpayer, has taxable income of $30,000. Using this abbreviated 2019 tax schedule for single filers below, compute her tax liability. $0 to $9,700 10%, $9700 to $39,475 12% 1. compute Cheryl's tax liability if her income consisted of $26,000 in wages and $4,000 in long term capital gains. 2.What would Cheryl's tax liability be if the $30,000 included $6,000 she withdrew from her IRA to pay off her credit cards? Cheryl is 35.
In 2023, Jack, age 12, has interest income of $6,540 on funds he inherited from his aunt and no earned income. He has no investment expenses. Christian and Danielle (his parents) have taxable income of $88,150 and file a joint return. Assume that no parental election is made. Click here to access the 2023 tax rate schedule. If required, round the tax computations to the nearest dollar. Jack's net unearned income is Jack's allocable parental tax is Jack's total tax is 2,200 X 264 X. 264 X.

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