Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $15,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 4. The maximum amount of investment income that Lewis and Oneida can have to qualify for the Earned Income Tax Credit is $ ____________

Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $15,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 4. The maximum amount of investment income that Lewis and Oneida can have to qualify for the Earned Income Tax Credit is $ ____________

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 12DQ

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Bill and Anne Chambers are married and file a joint return. They have no children. Their college friend Ryan lived with them for the entire current tax year. Ryan is 40 years old and earned 2,000 at a part-time job and received 25,000 in municipal bond interest. Ryan is a citizen of the United States and is unmarried. Which of the following statements is true regarding claiming Ryan as a dependent on the Chamberses tax return? a. If Ryan earns 15,000 in self-employment income in addition to the part-time job and municipal bond interest, he will qualify as a dependent on the Chamberses tax return. b. Ryan qualifies as a dependent for the Chamberses under the qualifying child rules. c. As long as Ryan does not provide more than half of his own support, he qualifies as a dependent for the Chamberses under the qualifying relative rules because he lived with them for the entire year. d. As long as the Chamberses provide more than half of Ryans support, he qualifies as a dependent for the Chamberses under the qualifying relative rules.
Sam and Abby are dependents of their parents, and each has income of 2,100 for the year. Sams standard deduction for the year is 1,100, and Abbys is 2,450. Because their income is the same, what causes the difference in the amount of the standard deduction?
Monica, a self-employed taxpayer, travels from her office in Boston to Lisbon, Portugal, on business. Her absence of 13 days was spent as follows: a. For tax purposes, how many days has Monica spent on business? b. What difference does it make? c. Could Monica have spent more time than she did vacationing on the trip without loss of existing tax benefits? Explain.
Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?
Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $10,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 3. Lewis and Oneida are eligible to claim the Earned Income Tax Credit (EITC) without a qualifying child. Sebastian and Ashley Miller are married and always file Married Filing Jointly. Sebastian earned $32,000 in wages and Ashley earned $24,000 in wages. The Millers paid all the cost of keeping up a home and provided all the support for their two children, Laura and Timothy, who lived with them all year. Laura is 14 years old and Timothy turned 17 in November 2022. Sebastian and Ashley did not have enough deductions to itemize,…
Clay and Marian are married and will file a joint return. Marian is a U.S. citizen with a valid Social Security number. Clay is a resident alien with an Individual Taxpayer Identification Number (ITIN). Marian worked in 2022 and earned wages of $32,000. Clay worked part-time and earned wages of $18,000. The Washingtons have two children: Erin, age 12 and Jenny, age 18. The Washingtons provided the total support for their two children, who lived with them in the U.S. all year. Erin and Jenny are U.S. citizens and have valid Social Security numbers. 8. The Washingtons do not qualify for the Earned Income Credit because Clay has an ITIN. True False
Clay and Marian are married and will file a joint return. Marian is a U.S. citizen with a valid Social Security number. Clay is a resident alien with an Individual Taxpayer Identification Number (ITIN). Marian worked in 2022 and earned wages of $32,000. Clay worked part-time and earned wages of $18,000. The Washingtons have two children: Erin, age 12 and Jenny, age 18. The Washingtons provided the total support for their two children, who lived with them in the U.S. all year. Erin and Jenny are U.S. citizens and have valid Social Security numbers. 7. Jenny qualifies the Washingtons for the Credit for Other Dependents. t f
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Adam and Lisa are married and want to file a joint return.• Adam is a U.S. citizen and has a valid Social Security number. Lisa is a resident alien and hasan ITIN. They resided in the United States all year with their children.• Adam and Lisa have two children, Maria, age 11, and Luis, age 17. Maria and Luis are U.S.citizens and have valid Social Security numbers.• Adam earned $22,000 in wages.• Lisa earned $20,000 in wages.• In order to work, the Garcias paid $2,000 to their son Luis to care for Maria after school.• Adam and Lisa provided all of the support for their two children. 4. What is the maximum amount Adam and Lisa are eligible to claim for the child tax credit? 5. The Garcias qualify for the child and dependent care credit.
Please read the information and answer the questions: Jason, 39 and single, helps support his mother Maria, his son Jeff, his father Rod, his brother Mark, and his girlfriend Layla (not Jeff's mother), all of whom are U.S. citizens with SSNs and none of whom file a joint tax return with anyone else. Maria, Jeff, Rod, Mark and Layla cannot be claimed as dependents of anyone else (other than potentially Jason), and none of them are disabled. Jason has gross income of over $100,000 in 2020. Maria (Jason's mother), single, did not live with Jason at all in 2020. She lived in her own home across the street from Jason. Jason provided 80% of Maria’s support in 2020, and Maria's only income was municipal bond interest of $5,000. Jeff (Jason's son), 21, single, lived with Jason for all of 2020. Jeff was not a student. Jeff worked part-time and earned wages of $4,000. Jason provided 25% of Jeff’s support in 2020, and Jeff’s girlfriend provided 60% of Jeff’s support. Jeff provided 15% of his own…
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 Šocial Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. 3. Marsha is not required to file a return, but should file a return to claim a refund of her federal income tax withholding. True False