Answered: Is Mary Jane's father considered a…

Business

Accounting

Is Mary Jane's father considered a dependant?

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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Lorenzo and Carlotta have three children (ages 5, 6, and 14). Lorenzo earned $36,000 in 2020. Carlotta worked part-time and earned $5,000. They had no other income. They paid a total of $4,600 in qualifying childcare expenses for their two youngest children ($2,300 for each child). The 14-year-old is Lorenzo's son from a prior marriage. He lives with Lorenzo's first wife, but Lorenzo will be claiming his son as a dependent this year. What is the correct amount of the federal Child and Dependent Care Expenses Credit? $495 $945 $990 $1,012
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children (ages 4, 8, 11, and 14) who live with her. She also maintains the household in which her parents live and 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 has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. Click here to access the standard deduction table to use, if required. If an amount is zero, enter "$0". a. Compute Charlotte's taxable income. $fill in the blank: 56,900 (correct) b. Using the Tax Rate Schedules (click here), tax liability (before any allowable credits) for Charlotte is $fill in the blank: 6,430 for 2021. (correct) c. Compute Charlotte's child and dependent tax credit. Charlotte's child tax credit is $fill in the blank: 12,600 (Incorrect) , of which $fill in the…
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…
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.
Alice, age 58, is single. She owns her home and provided all the costs of keeping up her homefor the entire year. Her only income for 2022 was $46,000 in W-2 wages. Linda, age 24, and her daughter Nancy, age 4, moved in with Linda's mother, Alice, after sheseparated from her spouse in April of 2020. Linda's only income for 2022 was $25,000 inwages. Linda provided over half of her own support. Nancy did not provide more than half ofher own support. Linda will not file a joint return with her spouse. All individuals in the household are U.S. citizens with valid Social Security numbers. No onehas a disability. They lived in the United States all year. For the purpose of determining dependency, Nancy could be the qualifying child ofOnly Alice b. Only Linda c. Either Alice or Linda d. Neither Alice nor Linda 10. Linda is not eligible to claim Nancy for the earned income credit because her filing status isMarried Filing Separate.a. Trueb. False
Thomas is age 40 and was widowed in 2019. He has a daughter, Christina, age 6. • Thomas provided the entire cost of maintaining the household and over half of the support for Christina. In order to work, he pays childcare expenses to Downtown Daycare. • Thomas purchased health insurance for himself and his daughter through the Marketplace. He received a Form 1095-A.. Thomas and Christina are U.S. citizens and lived in the United States all year in 2022. 30. What is Thomas's most advantageous filing status? a. Single b. Married Filing Separately c. Head of Household d. Qualifying Surviving Spouse (QSS) 31. Thomas's adjusted gross income on his Form 1040 is $ 32. Thomas can claim the following credits on his tax return. a. Child Tax Credit b. Child and Dependent Care Credit c. Premium Tax Credit d. All of the above 33. Thomas's Retirement Savings Contributions Credit on Form 8880 is $ 34. The total amount of Thomas's advanced payment of premium tax credit for 2022 is $_ 35. Thomas's…
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,…
Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane’s Social Security num-ber is 123-45-6781. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. Jane has never owned or used any virtual currency. During 2019, Jane had the following income and expense items: a. $100,000 salary from Legal Services, Inc. b. $20,000 gross receipts from her typing services business. c. $700 interest income from Third National Bank. d. $1,000 Christmas bonus from Legal Services, Inc. e. $60,000 life insurance proceeds on the death of her sister. f. $5,000 check given to her by her wealthy aunt. g. $100 won in a bingo game. h. Expenses…
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Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,350 in child care expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,700 from her jewelry business. In addition, she received child support payments of $20,700 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside Meals for Lawrence at Lakeside Doctor and nurse fees at Lakeside Cable TV service for Lawrence's room at Lakeside Total $20,700 4,140 3,105 414 $28,359 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?
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