Marshall takes a $12,000 distribution from his IRA to pay some of his daughter's $18,000 qualified education expenses at an eligible educational institution. His daughter paid $8,000 of her expenses with a tax free scholarship. How much of Marshall's IRA distribution is subject to 10% tax on early distribution? 1. $10,000 2. $6000 3. $2,000 4. $0

Q: what is the amount subject to income tax on his current tax return?

A: Since she has received only 4 installments in current year, we must segregate the installment…

Q: Income Tax Credits (LO. 6) Brendan and Theresa are married and have three children in college. Their…

A: The tax credits are referred to as credits provided by tax law that reduce the income tax liability…

Q: Tom sold mutual fund shares he had owned 3 years so that he could use the proceeds to return to…

A: In USA as per IRS rules for tax years 2021 & 2022 the capital gain tax is 0% , 15% &…

Q: icole is a student at USB Law School; she receives a $52,000 scholarship. Of the $52,000, $40,000 is…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: John and Charlotte are considering contributing $1,000 to their church. This contribution will bring…

A: The correct answer to this question will be :  (D) $ 0   The main reason being only taxpayers whose…

Q: Mr. Jacob Marley is single with no children and takes the standard deduction and one exemption.  If…

A: Annual Income - $81400 Single Standard Tax Deduction - $6300 Personal Exemption Amount - $4050

Q: Question 8: Gift aid donation scheme. Brenda has employment income of £55,000 each year and makes a…

A: The question is given to compute the income tax liability. Tax liability: Tax liability refers to…

Q: Lisa, age 45, needed some cash so she withdrew $50,000 from her Roth IRA. At the time of the…

A: In general, qualified distributions from a Roth IRA are not taxable or subject to early distribution…

Q: Education Tax Credits (LO 7.5) Janie graduates from high school in 2022 and enrolls in college in…

A: A tax is a compulsory contribution or financial charge levied by the government on the income earned…

Q: Jack's MBA tuition, books, and fees for 2021 were $41,000. Coca-Cola reimbursed $25,000 of this…

A: According to the questions, we are required to find the correct answers. To give the answers, we…

Q: ill is a freshman at Florida State University where his tuition is $4,000. Sydney, his older…

A: There are deduction available for education expenses done and the credit can be taken for education…

Q: Emma has finished paying her parents and decides that she will divert most of those payments towards…

A: The question gives the following information:

Q: manda receives a $12,000 distribution from her education IRA The distribution consists of $7,000 of…

A: As per IRS, contributions made to Education IRA is non tax deductible.  There are also no taxes on…

Q: Kamryn Brown is single and earns $50,000 in taxable income and will use the following tax rate…

A: The question is related to the taxation of single individual as per the tax slab given.

Q: Line 13b, Total Credits, on Form 1040 equals:

A: Tax credit can be defined as the portion of tax which is considered as an incentive for the…

Q: 9:) Cecil cashed in a Series EE savings bond with a redemption value of $16,000 and an original cost…

A: Bonds are debt securities issued by governments or corporations, to raise capital and return of…

Q: Jacob, age 38, has a Roth IRA balance of $90,000. He needs some money to start up a new business so…

A: Because Roth IRA contributions are made using after-tax monies, when Jacob makes a distribution from…

Q: A taxpayer paid $8,000 towards tuition for his daughter's PhD program. The daughter is not the…

A: The Lifetime Learning Credit is a tax credit provided by the United States government to help offset…

Q: Elton, age 17 and a dependent c

A: The kiddie tax prevents parents from avoiding taxes by transferring large gifts of stock.All…

Q: Brian and Kim have a 12-year-old child, Stan. For 2021, Brian and Kim have taxable income of…

A: Taxable income refers to the income which is earned through the taxpayer and on which the taxpayer…

Q: Required: What is the Lozano's net tax due(refunded) for 2023?

A: Tax due refers to the amount of money an individual or entity owes to the government based on their…

Q: Frank established

A: A Roth IRA is an individual retirement account under United States law that is generally not taxed…

Q: Using the tax formula calculate the taxpayer’s AGI for 2021. The taxpayer is single. Wages $50,000…

A: AGI is Adjusted gross income. The gross income after all the eligible tax deductions has been made…

Q: Matthews income is too high to contribute to a Roth IRA. he would like to convert his IRA to a Roth…

A: IRA is the individual retirement account and distribution for IRAs involves contributions and…

Q: 99

A: The first part of the question is asking about how Juniper's long-term care (LTC) insurance policy…

Q: Molly and Justin are considering contributing $5,000 to their favorite, tax deductible charity. This…

A: Amount contributed to charity = $5,000 Marginal tax rate = 28% Molly and Justin can reduce their tax…

Q: Assume that Reginald Worthington, who pays 40 percent in income taxes, plans to contribute $100,000…

A: Donations or any contributions made by any contribution to not for profit organisation are tax…

Q: Scott and Bonnue, married taxpayers, earn $258,000 in taxable income and $7,700 in interest from an…

A: Marginal Tax Rate: It is the percentage or portion of an additional income subject to taxation. The…

Q: Samuel's tuition and fees for the past year totaled $12,000. Of these costs, $9,000 were paid by a…

A: Here in this situation Samuel incurred the tuition fees for $12000.  Out of this $12000 Parents…

Q: a. Make a gift of bonds valued at $10,000 that yield $800 per year interest to their 24-year-old…

A: Alternative a:Make a gift of bonds valued at $10,000 to their daughter, who has no other income.Tax…

Q: Amount (GHC) Rate of tax (%) First 10,000.00 Free Next 30,000.00 Next 30,000.00 10 Next 60,000.00 20…

A: Annual Salary = GH¢ 250,000 Social Security Contribution= 5% =(250,000/100*5)= GH¢ 12,500

Q: mebla age 58 takes a $12,000 distribution from her traditional IRA. she uses the distribution to pay…

A: Additional Tax: Additional Tax has the same meaning as it does under Section 529A of the Code, which…

Q: List the Forms and/or Schedules that would be used for a Taxpayer that has the following: W-2 income…

A: here is a list of common IRS forms and schedules that may be relevant for a taxpayer with the…

Q: Alex earns an income of $60,000 this year as a sole proprietor. He pays the following amounts during…

A: Calculation of  Alex’s Adjusted Gross Income (AGI) :    Alex’s income…

Q: would be in the 24% federal marginal tax bracket. How much will she pay in income taxes on the…

A: ROTH IRA are retirement plan in which amount of deposit are done after paying adequate taxes and…

Q: Cecil cashed in a Series EE savings bond with a redemption value of $15,500 and an original cost of…

A: Bonds are debt securities issued by governments or corporations, to raise capital and return of…

Q: Noah and Sophia want to make a maximum contribution to their state's qualified tuition program (Code…

A: A 529 plan stands for a tax-advantaged savings strategy strategically crafted to assist families in…

Q: Ted and Julia Higgins are married for all of 2022 with an AGI of $175,000 which includes $25,000 of…

A: Tax credit refers to the sum which could be subtracted from aggregate payable tax as well as offsets…

Q: D’von works for a company that matches his 401(k) retirement contributions at a rate of “$0.50 per…

A: 401(K) is employer promoted retirement plan in which both employee and employer contribute in some…

Q: Required information [The following information applies to the questions displayed below.] Yuki (age…

A: IRA (Personal retirement account) is a tax-advantageous savings account that can be opened by anyone…

Q: Joe Taxpay

A:

Q: Jonathan and Bethany (married filing jointly) have $60,000 in net investment income and AGI of…

A: Unearned income Medicare contribution tax: It is an tax applied to net investment income…

Q: Anisha has contributed $2,500 a year to her child’s RESP for the last 5 years. She has received the…

A: contribution = $2500Time = 5 yearsInvestment income = $200

Q: 1. The Smiths are a family of four with the wife earning $150,000 and the husband earning $50,000.…

A: 1. Federal Income Tax:First, we need to calculate the taxable income by subtracting the standard…

Q: 25. John withdrew $16,000 from a 529 plan for his 12-year-old son, John Jr. John Jr. is in 6th grade…

A: In the United States, distributions from a 529 plan are typically tax-free if they are used for…

Q: Janice and Paul file a joint tax return for 2022. They pay the following nonbusiness taxes in 2022:…

A: All taxes paid to state government and other state taxes and also any kind of taxes paid can be…

Q: John makes $6,500 contribution into a Roth IRA in 2023. He is in the 22% marginal tax bracket. How…

A: An IRA (Individual Retirement Account) contribution refers to the money that an individual deposits…

Q: what amount of taxes and/or early distribution penalties will Javier be required to pay on this…

A: When money is taken out of a fixed-term investment before the permitted date, it is referred to as…