Jenny, single, age 42, earns $50,000 working in 2022. She has no other income. Her medical expenses for the year total$5,000. During the year, she suffered a nonbusiness casualty loss of $7,500 when her apartment is damaged by floodwaters (part of a Federally declared disaster area). Jenny contributed $10,000 to her church. She is trying to decidewhether to contribute $1,000 to a traditional IRA. Fill in the table below to see if the IRA contribution reduces taxableincome. Don't forget to apply the floors to the medical expenses. The deductible casualty loss has been calculated foryou. We will look at personal (nonbusiness) casualty losses in another chapter; note that the nonbusiness casualty losscalculation involves 2 floors.1. Complete the table to show the effect the IRA contribution would have on Jenny's itemized deductions.Without IRAContributionGross IncomeContribution to IRAAGIItemized DeductionsCharitable contributionMedical expense deductionCasualty loss deductionTotal itemized deductionsTaxable incomeWith IRA Contribution50,000$7,500-$100-(10% x AGI) = 25002. Please show your calculations for the medical deduction here.50,000$024003. By how much did contributing to the IRA increase Jenny's itemized deductions?Report a dollar amount.$4. By how much did the $1,000 IRA contribution reduce Jenny's Taxable Income?

1]Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross…

Answered: enny, single, age 42, earns $50,000

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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Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children, who live with her. Charlotte also maintains the household in which her parents live, and she furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte’s father received $2,400 from a part-time job. Charlotte earns an $80,000 salary, a short-term capital loss of $2,000, and a cash prize of $4,000 at a church raffle. Charlotte reports itemized deductions of $10,500. Use tax figures for 2022.a. Compute Charlotte's taxable income.b. Using the Tax Rate Schedules , tax liability for Charlotte is $ for 2022.c. Compute Charlotte's child and dependent tax credit.
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Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf, Kathleen has contributed $43,680 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $72,800, and the balance in her traditional 401(k) is $55,200. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent. Problem 13-61 Part a (Algo) a. If Kathleen receives a $19,500 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution
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Larry and Laura Morton have one child. Tina is a 15 year old high school sophomore. Laura's sister, Meg (23 years old), also lives with them and they furnish over half of her support. Meg earns $3,000 working part-time. Larry and Morton's AGI is $170,000. What are the total amounts of their credits for dependents? (Note: some prior knowledge of dependency status is assumed here - SEE Chapter 3 for a refrecher if vou needenel

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