Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 ininterest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2020 through their state exchange and elected to have the credit paid in advance. The 2020 Form 1095-A thatthe Collins received from the exchange lists the following information:Annual premiums$9,800Annual premium for the designated silver plan in the state$10,800Total advance payment of the premium tax credit$9,200The Federal Poverty Line for a family of four is $25,750.Table for Repayment of the Credit AmountSingleTaxpayers OtherThan SingleLess than 200%$325$650At least 200% but less than 300%8001,600At least 300% but less than 400%1,3502,700At least 400%No limitNo limitClick here to access the 2020 Applicable Figure Table to use for this problem.Calculate the excess advance premium tax credit and the repayment amount for 2020.Round any division to two decimal places before converting to a percent.Excess advance premium tax creditRepayment amount7,169 X

Premium tax credit refers to the refundable tax credit in the US which is payable through the IRS to…

Answered: interest income from tax exempt bonds.…

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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Required information [The following information applies to the questions displayed below.] In 2021, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) b. Elaine's AGI is $168,000. American opportunity tax credit
Data: Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is $200,000. Question: What is her self-employment tax liability and additional Medicare tax liability for 2020? Thx, Stephanie
The required deduction for Social Security is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45% HI (Hospital Insurance, commonly known as "Medicare") for all earnings. Refer to the Social Security and Medicare information. Employers are required to match the employee's deductions and send the total to the IRS. Compute the maximum percent that can be sent to the IRS for any one employee during the period of a year. 13.3% 13.5% 15.3% 15.5%
Parents agree to invest $600 (at 12%, compounded semiannually) for their son on the December 31 or June 30 following each semester that he makes the dean's list during his 4 years in college. If he makes the dean's list in each of the 8 semesters, how much money will his parents have to give him when he graduates? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.)$ _____
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Charitable Donations Tax Credit For 2020, Travis Hoffman has Net Income For Tax Purposes of $350,000 and Taxable Income of $325,000. During the year, he makes eligible charitable gifts of $225,000. Determine Mr. Hoffman’s 2020 charitable donations tax credit.
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Sam and Diane are completing their federal income taxes for the year and have identified the amounts listed here. How much can they rightfully deduct? (Assume itemized deductions) AGI: $83,500 Medical and dental expenses: $9,350 State income taxes: $3,850 Mortgage interest: $10,900 Qualified charitable contributions: $1,650
Which of the following qualified plan distributions are subject to a 10% early withdrawal penalty in 2023? Garrett, age 56, currently employed by UBEIT Corporation, takes a $125,000 distribution from the UBEIT 401(k) plan. Brad, age 60, takes a $1,000,000 distribution from his employer’s profit-sharing plan. Ten days after receiving the $800,000 check (reduced for 20% withholding), Brad deposited the $800,000 into a new IRA account. Patricia, age 22, withdraws $2,000 of her contributions from her 401(k). A. 3 only. B. 1 only. C. 2 and 3. D. 1 and 3.
Sherina Smith (Social Security number 785-23-9873) lives at 536 West Lapham Street, Milwaukee, WI 53204, and is self-employed for 2020. She estimates her required annual estimated income tax payment for 2020 to be $8,468. She was required to pay $254 when she timely filed her prior year tax return. Complete the first quarter voucher below for Sherina for 2020. Form1040-ESDepartment of the TreasuryInternal Revenue Service 2020 Estimated Tax Payment Voucher 1 OMB No. 1545-0074 File only if you are making a payment of estimated tax by check or money order. Mail this voucher with your check or money order payable to “United States Treasury.” Write your social security number and “2020 Form 1040-ES” on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher. Calendar year—Due April 15, 2020 Amount of estimated tax you are paying by check or money order. Dollars Cents fill in the blank 1

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