In May, Jonathon left his wife Sarah. While the couple lives apart and has no contact witheach other, they were not legally divorced. Sarah found herself having to financially providefor the couple's eleven year-old child. Sarah paid all the costs of maintaining the household.When it is time to complete their taxes Sarah has no idea how to get in contact with Jonathon.Considering these facts, what is Sarah's most favorable filing status?Group of answer choicesMarried Filing JointlyHead of HouseholdMarried Filing SeparatelyQualifying Widow(er)Single

There are five different tax filing statuses. They are, Married filing jointlyHead of…

Answered: In May, Jonathon left his wife Sarah.…

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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Interview Notes Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. 4. Marsha qualifies for the recovery rebate credit of $500 for Shelby.Note: Congress may have enacted additional legislation that will affect taxpayers after this publication went to print. Please answer questions based on the information provided in Publication 4491, VITA/TCE Training Guide and Publication 4012, VITA/ TCE Resource Guide. True False
Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates income of $162,000. Ben is a grade school teacher with wage income of $75,000. The couple has investment income that is less than their standard deduction. With enactment of the deduction for qualified business income, the couple is wondering if they should continue to file as married filing jointly or instead use the married filing separately status. Why do they wonder this, and what advice would you offer them and why? If each spouse files separately, Jane's income is close to the threshold relevant for , such as the law firm. The use of the married filing jointly filing status will result in QBI deduction. Therefore, from a tax viewpoint, it would probably benefit Jane and Ben to file .
Suzanna earns $4000 in her summertime job; the rest of the year she attends college fulltime. Suzanna may claim an exemption from FIT withholding if: a.she also has a taxable scholarship (used for housing) = $15,000. b.her unearned income (interest) = $1698. c.her aunt claims her as a dependent and she has no unearned income. d.her unearned income (dividends) = $1800.
Mark (age 55 in 2020) and his late wife, Mary, were married in 1990. Mark and Mary have a son, Matt, who was born in 2009. Mary passed away on October 4, 2020. Mark has not remarried. Mark maintained a household for Matt, his dependent child (qualifying child), for all of 2020 & 2021. What allowable filing status would be most beneficial for Mark to use in 2020?
Bill is single and fully supports his mother who is in a nursing home. Bill's mother has no income. What is his filing status? Choose one answer. a. MFS b. Q/W С. НОН d. S
18 Sandy is seeking child support under the Divorce Act from her former husband, Raymond. Her daughter, Kalia is a normal healthy child who attends daycare while Sandy works. Sandy hopes that the court will order an amount in addition to the basic amount to help her defray some of her unique expenses. Which of the following purchases or expenses may result in Raymond having to pay an amount greater than the basic amount under the federal Child Support Guidelines? a) expenses for Kalia's daycare b) Kalia's new clothes c) the loan on Sandy's new car, which has a built-in car seat for Kalia Od) the child-sized, electric Barbie-mobile that Sandy bought for Kalia's third birthday
Jerry, age 23, a full time student and not disabled, lives with William and Sheila Carson. Jerry is William's older brother. Jerry is single, a US citizen, and does not provide more than one half of his own support. William and Sheila are both 21 and file a joint return. Can William and Sheila claim a dependency exemption for Jerry as a qualifying child? Please go to the IRS website noted below: https://www.irs.gov/ Please review Publication 501 and let us know if William and Sheila can claim Jerry as a qualifying child.
53. Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6782. Janice's parents continue to provide health insurance for her under their policy. Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund. During 2019, Janice reported the following income and expense items connected with her business. Income from sale of articles $85,000 Rent 16,500 Utilities…
Aishwarya's husband passed away in 2021. She needs to determine whether Jasmine, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is a resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022. Required: Is Aishwarya allowed to claim Jasmine as a dependent for 2022? Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $5,000 for the year? Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $2,500 for the year?
In May 2021, Whitney filed for divorce from her husband, Michael. Although they lived apart for the last six months of the year, their divorce is not yet finalized and they are still legally married. Whitney does not wish to file a joint 2021 return, and she has no qualifying child or qualifying relative. What filing status should Whitney use?
Han Solo is divorced during 2020. Their son lives with Han’s former spouse, Princess Leia. Han lives alone, and Princess Leia supports their son. During 2020, Wolverine is married to Storm, and they have 2 children (i.e., dependents). Wolverine and Storm have a fight in March; Wolverine leaves and never returns. Storm has no idea where Wolverine is. Storm supports the two children. For 2020, what is the filing status for Han Solo and Storm? Han Solo: Single / Storm: Married filing separately Han Solo: Head of Household / Storm: Married filing separately Han Solo: Head of Household / Storm: Head of Household Han Solo: Married filing separately / Storm: Single Han Solo: Single / Storm: Head of Household
Alison and her husband, Tyrone, were married at the beginning of 2021. They separated on July 5, 2021, and Tyrone moved out of the house at that time. Their son, Cam (9), lived with Alison all year. Alison paid more than half of the total cost of keeping up the home in 2021. Alison and Tyrone's divorce was finalized on January 3, 2022. Alison does not wish to file a joint return with Tyrone. What is Alison's most advantageous 2021 filing status and standard deduction? Qualifying widow(er); $25,100. Head of household; $18,800. Married filing separately; $12,550. Single; $12,550.

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