Multiple Response QuestionPaul and Tom have three children, Cathy (aged 15),Jacinta (aged 13) and Toby (aged 10), all of whom are fulltime students and living with them. Jacinta and Toby haveno income, but Cathy has earned $3,556 during the year.In addition, Paul pays child support for his son, David,who lived with Peter's ex-partner and is a full timestudent aged 17. David has had no income during theyear.How many children will Paul include at Item M1 Label Yof the tax return?31204

The objective of the question is to determine the number of children that Paul will include at Item…

Answered: Multiple Response Question Paul and Tom…

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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John's Tax Situation Ever since his wife's death, John Dutton has faced dillicult personal and financial circumstances His job provides him with a fairly good income but requires him to hire a caregiver for his daughters, ages 3 and 5, nearly 20 days a month This requires him to use in home childcare services that consume a large portion of his income. Since the Duttons ive in a small apartment, this arrangement has been very inconvenient. This problem was magnified when John was forced to work remotely, from home, for most of the year due to the Covid-19 pandemic Although John has saved some money for his daughters' education and for his retirement, he has not sought to select investments that offer tax benefits. Overal, he needs to look at several aspects of his tax-planning activities to find strategies that will best serve his curent and future financial needs John has assembled the following information for the current tax year Answer the three questions that follow pertaining to…
Question 27 of 50. Mark and Carrie are married, and they will file a joint return. They both work full-time, and their 2021 income totaled $89,000, all from wages. They have one dependent child, Aubrey (5). During the year, they spent $9,000 for Aubrey's child care. Neither Mark nor Carrie received any dependent care benefits from their employer. What amount may they use to calculate the Child and Dependent Care Credit? $0 $3,000 $8,000 $9,000 Mark for follow up
Paul, age 40 and single, has an 8-year-old son, Larry. Larry resides with his mother, Susan, in her home. Pursuant to the terms of their divorce, Paul properly claims Larry as a dependent on his income tax return. Paul pays child support payments to his ex-wife for the support of his child. Susan does not claim Larry as her dependent, but she does bear the economic burden of supporting the household in which they reside. What is the maximum amount of the 2020 standard deduction that Susan qualifies for? Oa. $12,400 Оb. S18,650 Oc. $20,300 а. Od. $24,800 Oe. Susan does not qualify for claiming a standard deduction. е.
6 Holly and Zachary Neal, from Dublin, Virginia, are preparing to file their 2020 income taxes. Their children are grown; however, Holly's mother, Martha, has moved in with them. As Holly is mow caring for her mother, she is no longer working. Martha is dependent on their income for support except for her $525.24 monthly Social Security benefit. Zachary works for a software company and earns anough to keep their heads above water; however, he had to discontinue paticipation in his retirement plan so they could pay the bills. Holly is taking this opportunity to work toward her master's degree. They know they will file jointly but need your help preparing their tax return. They have gathered all of the appropriate records: a. Are Martha's unreimbursed medical expense deductible on the Neals' tax return? Why or why not? b. Is Martha required to file a tax return? Why or why not? c. What tax advantage(s), attributable to Holly's education expenses, can the Neals include on their return? d.…
2. Lee is 30 years old and single. Lee paid all the costs of maintaining his household for the entire year. Determine Lee's filing status in each of the following alternative situations: Filing Status Lee is Ashton's uncle. Ashton is 15 years old and has gross income of $5,000. Ashton lived in Lee's home from April 1 through the end of the year. Lee is Ashton's uncle. Ashton is 20 years old, not a full-time student, and has gross income of $7,000. Ashton lived in Lee's home from April 1 through the end of the year. Lee is Ashton's uncle. Ashton is 22 years old and was a full-time student from January through April. Ashton's gross income was $5,000. Ashton lived in Lee's home from April 1 through the end of the year. Lee is Ashton's cousin. Ashton is 18 years old, has gross income of $3,000, and is not a full-time student. Ashton lived in Lee's home from April 1 through the end of the year.
Martha and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30, already has a group life insurance policy, but Martha's employer does not offer a life insurance benefit. A financial planner is recommending that the 27- year-old Martha buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Martha evaluate this advice and decide on an appropriate course of action .
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Richard is age 39 and was widowed in 2017. He has a daughter, Isabella, age 5.• Richard provided the entire cost of maintaining the household and over half of the support for Isabella. In order to work, he pays childcare expenses to Busy Bee Daycare.• Richard declined to receive advance child tax credit payments in 2021.• Richard’s earned income in 2019 was $19,000.• Richard and Isabella are U.S. citizens and lived in the United States all year in 2021.• Richard received the third Economic Impact Payment (EIP3) in the amount of $2,800 in 2021. 30. Richard is not eligible to claim the Qualifying Widower filing status. true or false 31. What is Richard’s adjusted gross income on his Form 1040? A. $41,500 B. $41,580 C. $41,600 D. $41,620 32. Richard is eligible to claim the child…
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 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. 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 2019, 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 2019 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…
Emma is 45 years old and single. • Emma has two children, Poppy, age 17 and Sebastian, age 25, who lived with her all year. Sebastian had a part- time job where he earned $4,500 in 2020. • Emma paid all the cost of keeping up the home and more than half the support for her children. Emma received disability pension benefits. She has not reached the minimum retirement age of her employer's plan. She also received interest and dividend income. • In early January 2020, she went to the local casino and won some money playing the slot machines. During the intake and interview, she mentioned that she had gambling losses of $700. • She does not have enough expenses to itemize for the 2020 tax year. • Emma made a $100 cash contribution to her daughter's school to help buy masks for students. • Emma received a $1,700 Economic Impact Payment (EIP) in 2020. 18. Emma's disability pension is reported as wages and considered earned income for the purposes of the earned income credit.
6
In May, Jonathon left his wife Sarah. While the couple lives apart and has no contact with each other, they were not legally divorced. Sarah found herself having to financially provide for the couple's eleven year-old child. Sarah paid all the costs of maintaining the household. When it is time to complete their taxes Sarah has no idea how to get in contact with Jonathon. Considering these facts, what is Sarah's most favorable filing status? Group of answer choices Married Filing Jointly Head of Household Married Filing Separately Qualifying Widow(er) Single

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