James and Carol are husband and wife. James is disabled. The income and expenses of James andCarol for the year ended 31 December 2021 are as follows:RMJamesEmployment - Salary35,000CarolPartnership business - Statutory income4,350Employment-Salary16,600Travelling allowance3,000James incurred expenses as follows:Donation to an approved institution2,600Contributions to Employees Provident Fund3,850Medical examination for self750Medical expenses for his father1,300Fees for his part-time course in Islamic financing at auniversity in Kuala Lumpur, recognised by theGovernment1,100Carol incurred expenses as follows:Contributions to Employees Provident Fund2,156Medical expense on cancer treatment for herself2,700Medical expenses for her mother900Basic supporting equipment for her disabled father3,600Travelling expenses incurred in the course of her work4,0001Required:Calculate tax payable for the YA2021 for:(a)Carol(Thiwya Srie)(b)James; and (Kajendhiran)

Personal Income Tax in Malaysia: It is the tax charged on earned annual income by an…

Answered: James and Carol are husband and wife.…

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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Rebecca and Irving incur the following medical expenses during 2020: Medical insurance premiums $4,505 Hospital 970 Doctors 1,885 Dentist 600 Veterinarian 165 Chiropractor 230 Cosmetic surgery 1,555 Over-the-counter drugs 150 Prescription drugs 195 Crutches 100 They receive $4,125 in reimbursements from their insurance company of which $270 is for the cosmetic surgery. Refer to Exhibit 8-2 to answer the following questions. If an amount is zero, enter "0". What is their medical expense deduction if their adjusted gross income is the following: a. Adjusted gross income of $42,000. Their medical expense deduction is $ b. Adjusted gross income of $71,000. Their medical expense deduction is $
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1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income. b.Robert must claim the $1,200 premium paid by his employer as income. c.Robert must claim the $6,800 paid by the insurance company for the operation as income. d.None of these events are taxable on his 2021 return. 2. Electronically filed tax returns: a.Have error rates similar to paper returns. b.Offer faster refunds than paper returns. c.May not be transmitted from a taxpayer's home computer. d.Constitute less than 50 percent of the returns filed with the IRS. 3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of…
Here is another question: – Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary $38,000 Business net income $110,000 Interest income $400 $1,200 $2,200 Deductions for AGI $2,400 $14,000 Medical Expenses $10,427 $3,358 State income tax $900 $1,800 Real Estate tax $3,800 Mortgage Interest $4,200 Unreimbursed employee expenses $1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2018. Bart and Elizabeth reside at 2003 highland Drive, Durham, NC 27707.
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Martha incurred medical and dental expenses in 2020 for herself, her husband, Terry and her six year-old daughter, Sophia as follows: Medical/Dental Cost Net Income Martha $3,500 $132,000 Terry (spouse) 2,200 70,000 Sophia (child under 18) 800 According to the T1 Guide, either spouse can claim the medical expenses. Which spouse should claim the medical expense credit to receive the maximum amount? Type either Martha or Terry in the space provided. What is the maximum federal medical expense tax credit that can be claimed in 2020? Do not add commas or dollar signs to your answers. Round to the nearest whole number.
Dave Collins and Christie Collins have two children, Ben, age 14, and Cody, age 20. The medical expenses and net income for each member of the family for 2022 is as follows: Medical expenses Net income Aras $ 2,000 $100,000 Kelly 3,000 40,000 Ben 600 500 Cody 12,000 9,000 All of the medical expenses were paid by Aras in the 12-month period ending December 31. Determine the maximum medical expense credit for 2022.
during 2017, Regina, a sole proprietor, had the following income and expenses from herhome jewelry business. Regina is also employed as an office assistant at a local business. W-2 wages from employer$28,000 Proceeds from jewelry sales15,000 Supplies for jewelry5,000 Travel for jewelry1,400 Charitable contributions to church3,000 a.What income or loss should be reported on Schedule C? b.What is Regina's AGI?
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Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($45,600), which is what the employer does for all widows and widowers of deceased employees. Donald had $28,400 in accrued salary that was paid to Darlene. Donald's employer had provided Donald with group term life insurance of $165,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $23,600 had been included in Donald's gross income under § 79. Donald had purchased a life insurance policy (premiums totaled $196,000) that paid $358,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $32,500 each year for a 21-year period. She received her…
Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.

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