solve it . Account query Ned is a head of household with a dependent son, Todd,who is a full-time student. This year, Ned made thefollowing expenditures related to Todd's support:Auto insurance premiumsRoom and board at Todd's schoolHealth insurance premiums (not through an exchange)Travel (to and from school)$ 1,7002,200600350What amount can Ned include in his itemized deductions?a. $1,700 included in Ned's miscellaneous itemizeddeductionsb. $2,050 included in Ned's miscellaneous itemizeddeductionsc. $950 included in Ned's miscellaneous itemizeddeductionsd. $600 included in Ned's medical expensese. None of the choices are correct

Step 1: Review of ExpensesAuto insurance premiums ($1,700):Auto insurance premiums are not…

Answered: Ned is a head of household with a…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter27: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 24CE

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Jarrod receives a scholarship of 18,500 from Riggers University to be used to pursue a bachelors degree. He spends 12,000 on tuition, 1,500 on books and supplies, 4,000 for room and board, and 1,000 for personal expenses. How much may Jarrod exclude from his gross income?
Paul Barrone is a graduate student at State University. His 10-year-old son, Jamie, lives with him, and Paul is Jamies sole support. Pauls wife died in 2018, and Paul has not remarried. Paul received 320,000 of life insurance proceeds (related to his wifes death) in early 2019 and immediately invested the entire amount as shown below. Paul had 42,000 of taxable graduate assistant earnings from State University and received a 10,000 scholarship. He used 8,000 of the scholarship to pay his tuition and fees for the year and 2,000 for Jamies day care. Jamie attended Little Kids Daycare Center, a state-certified child care facility. Paul received a statement related to the Green bonds saying that there was 45 of original issue discount amortization during 2019. Paul maintains the receipts for the sales taxes he paid of 735. Paul lives at 1610 Cherry Lane, Bradenton, FL 34212, and his Social Security number is 111-11-1111. Jamies Social Security number is 123-45-6789. The university withheld 2,000 of Federal income tax from Pauls salary. Paul is not itemizing his deductions. Part 1Tax Computation Compute Pauls lowest tax liability for 2019. Part 2Tax Planning Paul is concerned because the Green bonds were worth only 18,000 at the end of 2019, 5,000 less than he paid for them. He is an inexperienced investor and wants to know if this 5,000 is deductible. The bonds had original issue discount of 2,000 when he purchased them, and he is curious about how that affects his investment in the bonds. The bonds had 20 years left to maturity when he purchased them. Draft a brief letter to Paul explaining how to handle these items. Also prepare a memo for Pauls tax file.
Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000
Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible health insurance for all its employees. The plan has a 2,700 deductible for married taxpayers. Carrera also contributes 5 percent of each employees salary to a Health Savings Account. Tias salary is 30,000 in 2019 and 32,000 in 2020. Tia makes the maximum allowable contribution to her HSA in 2019 and 2020. She received 600 from the HSA for her 2019 medical expenses. In 2020, she spends 1,400 on medical expenses from her HSA. The MSA earns 28 in 2019 and 46 in 2020. a. What is the effect of the HSA transactions on Tias adjusted gross income? b. How much does Tia have in her HSA account at the end of 2020?
Andrea entered into a 529 qualified tuition program for the benefit of her daughter, Joanna. Andrea contributed 15,000 to the fund. The fund balance had accumulated to 25,000 by the time Joanna was ready to enter college. However, Joanna received a scholarship that paid for her tuition, fees, books, supplies, and room and board. So Andrea withdrew the funds from the 529 plan and bought Joanna a new car. a. What are the tax consequences to Andrea of withdrawing the funds? b. Assume instead that Joannas scholarship did not cover her room and board, which cost 7,500 per academic year. During the current year, 7,500 of the fund balance was used to pay for Joannas room and board. The remaining amount was left in the 529 plan to cover her room and board for future academic years. What are the tax consequences to Andrea and to Joanna of using the 7,500 to pay for the room and board?
Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures related to Todd's support: Auto insurance premiums $ 1,700 Room and board at Todd’s school 2,200 Health insurance premiums (not through an exchange) 600 Travel (to and from school) 350 What amount can Ned include in his itemized deductions?
Visno
Allie and Buddy are married, file a joint return, and have one son, Zack, age 5. Buddy has earned income of $48,000, and Allie was a full-time student for nine months (with no income). They paid a qualified child care center $3,450. How much is Allie and Buddy's child and dependent care credit for the year? (tax year 2021) Use Child and Dependent Care Credit AGI schedule. Multiple Choice SO. $1,125. $1,725. $3,450.
In 2023. Steven and Elyse withdrew $5.000 from a 529 plan (qualified tuition plan) to pay for their 10-year-old son, Alex, to attend private school. They used the $5,000 exclusively for his tuition during 2023How much of the distribution is taxable? A) $5,000 B) $2,500 C) $0 D) $1,000
naru
For the holidays, Marty gave a watch worth $22,300 to Emily and jewelry worth $46,000 to Natalie.Required: Has Marty made any taxable gifts this year and, if so, in what amounts? Assume Marty is married to Wendy and they live in a community-property state. What are the amounts, if any, of their taxable gifts? (For all requirements, leave no answer blank. Enter zero if applicable.) a.Marty's taxable gift to Emily$ Marty's taxable gift to Natalie$ b.Marty's taxable gift to Emily$0 Marty's taxable gift to Natalie$ Wendy's taxable gift to Emily$0 Wendy's taxable gift to Natalie$
Requirement For each scenario, indicate the amount that must be included in the taxpayer's gross income. a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. (Assume the tuition scholarship is less than the cost of tuition at Eastern Law School. Enter a "0" for any amounts that should not be included in the taxpayer's gross income.) The amount of tuition scholarship that Larry must include in his gross income is The amount of wages from the campus bookstore that Larry must include in his gross income is More info a. Larry was given a $1,500 tuition scholarship to attend Eastern Law School. In addition, Eastern paid Larry $4,000 per year to work part-time in the campus bookstore. b. Marty received a $10,000 football scholarship for attending Northern University. The scholarship covered tuition, room and board, laundry, and books. Four thousand dollars of the scholarship…

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