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 will Louise and her husband actually deduct on their joint 2021 Form 1040? 23. A $1,950 В 5,700 C 650 E None of the above

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 will Louise and her husband actually deduct on their joint 2021 Form 1040? 23. A $1,950 В 5,700 C 650 E None of the above

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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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?
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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.
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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.
Jill files a joint tax return with her husband. She who works at a retail store and earned $30,000 in 2021. Jill’s husband was unemployed in 2021 and did not have any earnings. Jill contributed $1,000 to her IRA in 2021. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $29,000. Jill may claim what amount for the Retirement Savings Contributions Credit (Saver’s Credit) for her $1,000 IRA contribution? A. $0B. B $200C. C $500D. D $1,000
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