In 2021, Laureen is currently single. She paid $2,600 of qualified tuition and related expenses for each of her twindaughters Sheri and Meri to attend State University as freshmen ($2,600 each for a total of $5,200). Sheri and Meri qualifyas Laureen's dependents. Laureen also paid $1,850 for her son Ryan's (also Laureen's dependent) tuition and relatedexpenses to attend his junior year at State University. Finally, Laureen paid $1,350 for herself to attend seminars at acommunity college to help her improve her job skills.What is the maximum amount of education credits Laureen can claim for these expenditures in each of the followingalternative scenarios? (Leave no answer blank. Enter zero if applicable.)a. Laureen's AGI is $45,000.DescriptionCreditsAmerican opportunity tax creditLifetime learning credit

Answered: In 2021, Laureen is currently single.…

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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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
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
Antonio is a small business owner and files jointly with his spouse. In 2019, he generates $100,000 of net profits from his business. His spouse, Maria, has $4,000 of state income tax withheld from her wages in 2019. They also pay $4,500 in property taxes on their home. Antonio determines that their state income taxes associated with his business are about $5,600 and makes estimated state income tax payments of that amount in 2019. How much should Antonio and Maria deduct for state taxes? a. Itemized deductions of $9,500 and deduct $5,600 for taxes on Antonio’s Schedule C for his business b. Itemized deductions of $10,000 and deduct $5,100 for taxes on Antonio’s Schedule C for his business c. Itemized deductions of $10,000 d. Itemized deductions of $4,000 and deduct $5,600 for taxes on Antonio’s Schedule C for his business
Richard is age 39 and was widowed in 2017. He has a daughter, Isabella, age 5.• Richard provided the entire cost of maintaining the household and over half of the support for Isabella. In order to work, he pays childcare expenses to Busy Bee Daycare.• Richard declined to receive advance child tax credit payments in 2021.• Richard’s earned income in 2019 was $19,000.• Richard and Isabella are U.S. citizens and lived in the United States all year in 2021.• Richard received the third Economic Impact Payment (EIP3) in the amount of $2,800 in 2021. 30. Richard is not eligible to claim the Qualifying Widower filing status. true or false 31. What is Richard’s adjusted gross income on his Form 1040? A. $41,500 B. $41,580 C. $41,600 D. $41,620 32. Richard is eligible to claim the child…
Gilbert is an elementary school teacher at a public school.Gilbert and Tara are married and choose to file Married Filing Jointly on their 2021 tax return. • Gilbert worked a total of 1,280 hours in 2021. During the school year, he spent $500 on unreimbursed classroom expenses. • Tara retired in 2018 and began receiving her pension on October 1st of that year.She explains that this is a joint and survivor annuity. She has already recovered $1,013 of the cost of the plan. • Gilbert settled with his credit card company on an outstanding bill and brought the Form 1099-C to the site.They aren’t sure how it will impact their tax return for tax year 2021.The Washingtons determined that they were solvent as of the date of the canceled debt. • Tara won $3,000 gambling at a casino and had additional lottery winnings of $150. Tara has documented casino losses of $1,500. • Their son, Chandler, is in his second year of college pursuing a bachelor’s degree in Logistics at a qualified educational…
Chester is single and paid the following items / taxes in 2020: • Paid $ 6,100 to his township for real estate taxes on his condo.• Paid $ 4,800 in association fees to the condo association on his condo.• Chester had $ 1,000 withheld from his pay for NJ State Income taxes.• Chester had $ 3,600 withheld from his pay for social security taxes.• Chester was assessed $ 1,400 by the state of New Jersey to settle an audit of his 2018 State Income Tax return. $ 1,075 was for additional 2018 state income tax and $ 325 was for interest and penalties. Chester paid the $ 1,400 in October of 2020.• Chester paid $ 1,650 in NJ Sales taxes. How much taxes may Chester deduct as an itemized deduction for taxes in 2020?
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules 2021.) What is the total amount of Marc and Michelle’s deductions from AGI? What is Marc and Michelle’s taxable income? What is Marc and Michelle’s taxes payable or refund due…
Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2019 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule Dividends and Capital Gains Tax Rates. 2021 AMT exemption for reference. The Fergusons reported making the following payments during the year: • State income taxes of $4,400. Federal tax…
Trey has two dependents, his daughters, ages 14 and 18, at year-end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2022 for his daughters under each of the following alternative situations? Use Exhibit 8-8. Required: His AGI is $109,200. His AGI is $433,000. His AGI is $421,400, and his daughters are ages 10 and 12.
Rahul and Ruby are married taxpayers. They are both under age 65 and in good health. For 2021 they have a total of $42,000 in wages and $300 in interest income. Rahul and Ruby's deductions for adjusted gross income amount to $6,000 and their itemized deductions equal $18,700. They have two children, ages 32 and 28, that are married and provide support for themselves. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100 a. What is the amount of Rahul and Ruby's adjusted gross income?
Marc and Michelle are married and earned salaries this year of $65,600 and $12,600, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $700 from corporate bonds. Marc contributed $2,700 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,700 (under a divorce decree effective June 1, 2006). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $6,400 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $3,105 in federal income taxes withheld from their paychecks during the year. What is the total amount of Marc and Michelle’s deductions from AGI?

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