Max and Sarah are the parents of twin three-year old boys. Max and Sarah work full- time and file taxes jointly. Both children attend the Teddy Bear Day Care Center. Their total day care expenses for 2022 were $10 200 What is the maximum amount of
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- Jordan and Alex are married with 3 children. They have W2 income, and they have almost completed their taxes for the year. They have chosen the standard deduction, they know that their tax owed on line 16 of the 2022 1040 form shows $23,906.62. They have $4,861.28 available to use. What amount will they have to pay to the IRS when they file their 1040 form?Rudy and Rebecca have AGI of $446,000. They have twin daughters, Ashley and Amy, ages 5. What amount of child tax credit can they claim in 2021?Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $153,700, and John worked part time as a receptionist for a law firm earning a salary of $30,700. Sandy also does some Web design work on the side and reported revenues of $5,700 and associated expenses of $1,600. The Fergusons received $1,140 in qualified dividends and a $285 refund of their state income taxes. The Fergusons always itemize their deductions, get the full benefit of deducting the entire amount of state income taxes paid, and their itemized deductions were well over the standard deduction amount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: • State income taxes of $4,825. Federal tax withholding of $21,000. • Alimony payments to Sandy's former…
- Stephanie is 12 years old and often assists neighbors on weekends by babysitting their children. Stephanie reported $13,700 of earnings from her babysitting. Calculate the 2022 standard deduction Stephanie will claim (assume that Stephanie’s parents will claim her as a dependent).R and J were married in 2007. They have a five year old child and a son born December 16, 2018. R’s 67 year old father lived in a nursing home until his death on March 4, 2018. R and J provided all of his support until his death. R earned $43,000 in salary during the year. They also had $2,100 in interest from the credit union. They incurred $7,800 in itemized deductions during the year. Compute their taxable income and their tax for 2018.Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2022 traveling in Europe and was not a college student. He had gross income of $4,655 in 2022. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2022, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises, LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2022 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
- Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and earn salaries in 2021 as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, Jim and Mary Jean pay Eleanor (Jim’s mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Jim and Mary Jean file a joint Federal income tax return. Compute their credit for child and dependent care expenses.Ian, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on Ian & Isabella's joint return). In 2020, Isabella and Ian had the following items: Salary (Isabella): $83,000 Salary (Ian): $13,000 Scholarship: $6,500 ($2,500 used to pay Ian’s tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are employed outside the home and, during 2021, earn salaries as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses? $???
- Jeremiah and Jonnie Chalk are married and have three dependent children, ages 3, 6, and 9. Assume the taxable year is 2022. Required: Compute their child credit if AGI on their joint return is $99,300. Compute their child credit if AGI on their joint return is $473,700. Compute their child credit if AGI on their joint return is $189,000 and assume that they also have one non-child dependent who meets the requirements for the child credit.Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $152,600, and John worked part time as a receptionist for a law firm earning a salary of $29,600. Sandy also does some Web design work on the side and reported revenues of $4,600 and associated expenses of $1,050. The Fergusons received $920 in qualified dividends and a $230 refund of their state income taxes. The Fergusons always itemize their deductions, get the full benefit of deducting the entire amount of state income taxes paid, and their itemized deductions were well over the standard deduction amount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,550. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse…Mr. and Mrs. Golden are married and have one preschool - aged child. During the year, Mrs. Golden is employed and earns $60,000 while Mr. Golden is a full-time student for the entire year. The amount paid for child care is $3,200. On a joint income tax return, their credit for child and dependent care expenses is: