Louise Lewis, age 72, is married and supports her mother, age 96. During 2021. Louise pays $1,300 for prescription medicine for her mother, who is claimed as a dependent, $1,000 for prescription medicine for her husband, and $3,400 for physician bills for herself. Louise's gross income is $140,000 and her adjusted gross income is $100,000. Assuming that Louise has sufficient other deductions to itemize for 2021, how much medical expense will 23. will Louise and her husband actually deduct on their joint 2021 Form 1040? $1,950 5,700 A C D 650 None of the above U OE

Louise Lewis, age 72, is married and supports her mother, age 96. During 2021. Louise pays $1,300 for prescription medicine for her mother, who is claimed as a dependent, $1,000 for prescription medicine for her husband, and $3,400 for physician bills for herself. Louise's gross income is $140,000 and her adjusted gross income is $100,000. Assuming that Louise has sufficient other deductions to itemize for 2021, how much medical expense will 23. will Louise and her husband actually deduct on their joint 2021 Form 1040? $1,950 5,700 A C D 650 None of the above U OE

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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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.
Mr. and Mrs. Vonce, both age 62, file a joint return for 2019. They provided all the support for their daughter who is 19 years old, legally blind, and who earns no income. Their son, age 21 and a full-time student at a university, had $4,200 of income and provided 70 percent of his own support during 2019. What is the other dependent credit Mr. and Mrs. Vonce may claim on their 2019 tax return? a.$500 b.$2,000 c.$0 d.$1,000 e.None of these choices are correct.
1. Mary is age 33 and a single taxpayer with adjusted gross income for 2018 of $29,400. Mary maintains a home for three dependent children and has itemized deductions of $3,000. Calculate the following amounts for Mary's 2018 income tax return: a. Mary's standard or itemized deduction amount b. Mary's taxable income 2. Steven, age 35 and single, is a commodities broker. His salary for 2018 is $111,500 and he has taxable interest income of $40,000. He has no deductions for adjusted gross income. His itemized deductions are $31,000. Steven does not have any dependents. a. What is the amount of his adjusted gross income? b. What are his allowable itemized deductions? c. What is his deduction for personal exemptions? d. What is his taxable income? e. What is his regular tax liability from the tax rate schedules?
John Jay, 45, is married and supports his mother, age 67. During 2019, he paid $1,300 for prescription medicines for his mother (who is his dependent), $1,000 for prescription medicines for his wife (age 43), and $5,400 for doctor and hospital bills for himself. His gross income is $55,000 and his adjusted gross income is $50,000. In itemizing his deductions, Jay may claim a medical expense deduction, after application of proper limitations, of: a, 3,950 b, 7,700 c, 1,575 d, 2,700 e, none of the above
Paige had $100,000 of income from wages and $3,650 of taxable interest. Paige also made contributions of $2,300 to a tax-deferred retirement account. Paige has 4 dependents and files as head of household.What is Paige's total income?What is Paige's adjusted gross income?For Paige's filing status, the standard deduction is $18,000. What is Paige's taxable income?
Rahul and Ruby are married taxpayers. They are both under age 65 and in good health. For 2021 they have a total of $42,000 in wages and $300 in interest income. Rahul and Ruby's deductions for adjusted gross income amount to $6,000 and their itemized deductions equal $18,700. They have two children, ages 32 and 28, that are married and provide support for themselves. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100 a. What is the amount of Rahul and Ruby's adjusted gross income?
Marlene, age 52, is not married and has salary income of $210,000 during 2020. She pays for all of the support for her 82-year old mother who lives in an assisted living facility and qualifies as Marlene's dependent during 2020. Marlene also has rental income of $7,000 and deductions toward AGI of $9,000 during 2020. Marlene's potentially allowable itemized deductions during 2020 would be $17,830. Marlene's employer withheld $43,500 of federal income tax from her salary in 2020. Based on this information, and ignoring any net investment income tax, compute: (1) Marlene's regular taxable income and tax liability on that taxable income for 2020, and (2) the amount of tax that she still owes or the refund that is due to her after all allowable credits and withholding for 2020.
Jasmine Dayne (29) is filing as a single taxpayer. In 2020, she received income from the following sources: $39,000 in wages. Alimony payments totaling $14,328. Her divorce was finalized in October 2019. Unemployment compensation of $6,200. Jasmine also made a timely $2,000 contribution to a traditional IRA for 2020.She had no other income or adjustments, and she will claim the standard deduction.To assist you in answering questions about Jasmine’s tax return, you may refer to Part I of Schedule 1, Additional Income and Adjustments to Income, which is shown below.Part I Additional Income1 Taxable refunds, credits, or offsets of state and local income taxes. ________2a Alimony received. _________2b Date of original divorce or separation agreement (see instructions). _________3 Business income or (loss). Attach Schedule C. _________4 Other gains or (losses). Attach Form 4797. ________5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E.…
Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat the following items for 2018: a. She makes a deductible contribution to an IRA on April 15, 2019. b. She has made an election to accrue the increase in value of savings bonds even though the increase is not received in cash. c. She prepays half a year of interest in advance on her mortgage on the last day of 2018. d. She pays all of her outstanding invoices for standard business expenses in the last week of December. e. She sends out a big bill to a customer on January 1, 2019, even though she did all of the work in December of 2018.
Use the information provided to answer questions about the taxpayer's 2021 return. - Jasmine Dayne (29) is filing as a single taxpayer. In 2021, she received income from the following sources: $39,000 in wages. Alimony payments totaling $14,328. Her divorce was finalized in October 2020. Unemployment compensation of $6,200. Jasmine also made a timely $2,000 contribution to a traditional IRA for 2021.She had no other income or adjustments, and she will claim the standard deduction. Question 1 What amount should Jasmine report for other income? Her partially completed Form 1040, page 1, is shown below. You may use the form, as well as refer to Schedule 1 (Form 1040) when answering this question. $0 $6,200 $20,528 $22,528 Question 2 What is Jasmine's adjusted gross income? Her partially completed Form 1040, page 1, is shown below. You may use the form to assist you in answering this question.
Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietor. Her 2020 Schedule C reports net profits of $15,000. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,800 in 2020. Serena also pays long-term care insurance premiums of $600 in 2020. Calculate Serena's self-employed health care deduction. Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2020 calendar tax year. Karen is covered by a pension through her employer. AGI phase-out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $65,000 – $75,000. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2020? Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. Assuming Phil's wages were $27,000 and Linda's wages…
Taylor, age 15, is a dependent of her parents. For 2019, she has the following income: $4,600 of wages from a summer job, $1,430 of interest from a money market account, and $1,875 of interest from City of Boston bonds. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Taylor's standard deduction for 2019 is s Taylor's taxable income for 2019 is s b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Click here to access the 2019 tax rate schedule. Compute Taylor's tax liability.