L. A. and Paula file as married taxpayers. In August of this year, they received a $5,200 refund of state income taxes that theypaid last year.How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios?Assume the standard deduction last year was $25,100.Note: Leave no answer blank. Enter zero if applicable.Required:a. Last year L. A. and Paula had itemized deductions of $19,200, and they chose to claim the standard deduction.b. Last year L. A. and Paula claimed itemized deductions of $31,400. Their itemized deductions included state income taxespaid of $7,500 and no other state or local taxes.c. Last year L. A. and Paula claimed itemized deductions of $27,600. Their itemized deductions included state income taxespaid of $10,500, which were limited to $10,000 due to the cap on state and local tax deductions.

a. In this situation L.A. and Paula consider standard deduction only, because standard deduction…

Answered: L. A. and Paula file as married…

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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Vijay and Lina Mehta are married with two dependent children. They paid $7,200 of wages to a nanny to care for their children and $549 employer payroll tax on these wages. The Mehtas file a joint return. Assume the taxable year is 2023. Required: a. Compute their dependent care credit if the children are ages 10 and 15. Vijay's earned income is $75,000 and Lina has no earned income. Their AGI is $81,300. b. Compute their dependent care credit if the children are ages 2 and 6. Vijay's earned income is $45,000 and Lina's earned income is $28,000. Their AGI is $81,300. c. Compute their dependent care credit if the children are ages 2 and 6. Vijay's earned income is $245,000 and Lina's earned income is $280,000. Their AGI is $475,000. Complete this question by entering your answers in the tabs below. Required Required 8 Required C Compute their dependent care credit if the children are ages 10 and 15. Vijay's earned income is $75,000 and Lina has no earned income. Their AGI is $81,300.…
Determine the amount of the standard deduction for each of the following taxpayers for tax year 2021: a. Christina, who is single. b. Adrian and Carol, who are filing a joint return. Their son is blind. c. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. d. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents. e. Rodolfo, who is over 65 and is single. f. Bernard, who is a nonresident alien with U.S. income. g. Manuel, who is 70, and Esther, who is 63 and blind, will file a joint return. h. Herman, who is 75 and a qualifying widower with a dependent child. a. b. C. d. e. f. g. h. Standard deduction $ $ 12,550 25,100
Required information [The following information applies to the questions displayed below.] Jeremy earned $100,800 in salary and $6,800 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $26,200 in itemized deductions. (Use the tax rate schedules.) b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $7,550. What is Jeremy's tax refund or tax due including the tax on the capital gain? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) (7) Taxable income Description Greater of standard deduction or itemized deductions (8) Income tax liability (9) Child tax credit (10) Tax withholding Tax due Amount $…
Compute the 2018 standard deduction for the following taxpayers. Margie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a part-time job. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. Frazier, age 55, is married but is filing a separate return. His wife Emma itemizes her deductions.
sabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $41,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $41,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 6 percent on her investments. Required: What is the after-tax cost if Isabel pays the $41,000 bill in December? What is the after-tax cost if Isabel pays the $41,000 bill in January? Use Exhibit 3.1. Note: Round your answer to the nearest whole dollar amount. Based on requirements a and b, should Isabel pay the $41,000 bill in December or January?
Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions. Please use Microsoft Excel using functions and formulas as appropriate.
Avery, an unmarried taxpayer, had the following income items: $ 43,600 3,500 Salary Net income from a rental house Avery has a 4-year-old child who attends a child care center. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and Standard Deduction Table. Required: Compute Avery's child tax credit and dependent care credit. a. Assume Avery paid $1,340 to the child care facility. b. Assume Avery paid $4,830 to the child care facility. Complete this question by entering your answers in the tabs below. Required A Required B Compute Avery's child tax credit and dependent care credit. Assume Avery paid $1,340 to the child care facility. Note: Round your intermediate computations and final answers to the nearest whole dollar amount. Amount Child Credit Dependent Credit $ $ 2,000 600
During the current year, merchandise is sold for $62,740 cash and for $85,360 on account. The cost of the merchandise sold is $96,270. What is the gross profit?
Jeremy earned $102,400 in salary and $8,400 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $34,200 in itemized deductions. (Use the tax rate schedules.) a. Determine Jeremy's tax refund or taxes due. (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding Description Amount
Problem 14-08 (Static) [LO 14-5] Mr. Olaf earned an $89.000 salary, and Mrs. Olaf earned a $40,330 salary. The couple had no other income and can't itemize deductions. Assume the taxable year is 2021. Use Individual Tax Rate Schedules and Standard Deduction Table Required: a. Compute their combined tax if they choose to file separate returns. b. Compute their tax if they file a joint return. Complete this question by entering your answers in the tabs below. 4 Required A Required B Compute their combined tax if they choose to file separate returns. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Mr. Olaf's Tax Mrs. Olaf's Tax Combined tax S s S Answer is complete but not entirely correct. Amount 12,880 X 3.200 10,089 Required 8 >
For the following taxpayers, determine if they are required to file a tax return in 2022. Required: a. Ricko, single taxpayer, with gross income of $17,300. b. Fantasia, head of household, with gross income of $17,200. c. Ken and Barbie, married taxpayers with no dependents, with gross income of $22,300. d. Dorothy and Rudolf, married taxpayers, both age 68, with gross income of $24,200. e. Janyce, single taxpayer, age 73, with gross income of $13,200.
Determine the taxable amount of Social Security benefits for the following situations. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Tyler and Candice are married and file a joint tax return. They have adjusted gross income of $39,400 before considering their Social Security benefits, no tax-exempt interest, and $13,790 of Social Security benefits. As a result, $ of the Social Security benefits are taxable. b. Assume Tyler and Candice have adjusted gross income of $15,800 before considering their Social Security benefits, no tax-exempt interest, and $17,380 of Social Security benefits. As a result, $ 8,490 X of the Social Security benefits are taxable. c. Assume Tyler and Candice have adjusted gross income of $104,500 before considering their Social Security benefits, no tax-exempt interest, and $15,675 of Social Security benefits. As a result, 96,338 X of the Social Security benefits are taxable.

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