Pete is a 26 year-old full-time student at ECU and made $5,000 by working at Publix this year. Pete lives with his grandparents and they provided at least 80% of Pete's financial support. Therefore, Pete's grandparents can claim him as a dependent on their federal income tax return this year (Gross income limit for qualifying elative is $4,200). O True O False

Pete is a 26 year-old full-time student at ECU and made $5,000 by working at Publix this year. Pete lives with his grandparents and they provided at least 80% of Pete's financial support. Therefore, Pete's grandparents can claim him as a dependent on their federal income tax return this year (Gross income limit for qualifying elative is $4,200). O True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate Single up to $9325 up to $37,950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption $4050 (per person) Married Filing Jointly up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 (b) What is Kevone's AGI? $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37,950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350…
Elizabeth has three children ages 10, 17, and 19. All the children live with her, are full-time students, and claimed as dependents on her tax return. Elizabeth's AGI is $100,000 in 2023 and she files head of household. Her tax liability before the application of any credits is $8,400. What is the maximum Child Tax Credit she can claim on her 2023 tax return? $4.000 O $6,000 $2,000 $0
Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.
Conner and Matsuko paid $1,000 and $2,000, in qualifying expenses for their two sons, Jason and Justin, respectively, to attend Idaho State University. Jason is a sophomore and Justin is a freshman. Conner and Matsuko's AGI is $195,000. What is their allowable American opportunity tax credit? Multiple Choice $0. $3,000. $2,000. $3,700.
Suzanna earns $4000 in her summertime job; the rest of the year she attends college fulltime. Suzanna may claim an exemption from FIT withholding if: a.she also has a taxable scholarship (used for housing) = $15,000. b.her unearned income (interest) = $1698. c.her aunt claims her as a dependent and she has no unearned income. d.her unearned income (dividends) = $1800.
Jayana, a calendar-year taxpayer, uses the cash method of accounting for a sole proprietorship. In late December Jayana received a $37,000 bill from her accountant for consulting services related to her small business. Jayana can pay the $37,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 11 percent on her investments. a. What is the after-tax cost if Jayana pays the $37,000 bill in December? After-tax cost b. What is the after-tax cost if Jayana pays the $37,000 bill in January? Use Exhibit 3.1. (Round your answer to the nearest whole dollar amount.) After-tax cost c. Based on requirements a and b, should Jayana pay the $37,000 bill in December or January? O December O January
Morgan is 16 years old and works throughout the year at a local pizza place. This year, she made $4,890 at the pizza place and received $450 in interest income from her savings account. Assume Morgan's parents claim her as a dependent on their tax return. What is Morgan's standard deduction for the year? Enter your answer as a whole number. Omit dollar signs.
Troy is single, runs his own hardware business and paid $3500 in healthcare insurance premiums for himself during the current tax year. Troy's net profit from the business is $225,000. What percentage of his healthcare premium can Troy deduct in the current tax year?
Josh is a MFJ taxpayer and decides to return to school to get a graduate degree at night school while still working his full-time job. He is able to take class part time. Josh and his husband have an AĞI of $124,000, his tuition costs were $15,000, and his books are $1,500. Josh already attended four years of college and used the American Opportunity Tax Credit all four years. How much of a LTL tax credit is he eligible to take in 2020? Group of answer choices $1,500 $2,000 $1,000 None of these amounts.
Peter has total income of $54000. He has employment expenses of $18000, made a $5000 RRSP contribution and incurred $4000 in tuition expenses for his daughter, who did not work and is a freshman at a local community college. He has a basic personal basic amount of $12298 and his marginal tax rate is 26%. Compute Ralph's taxable income for the current year.
Chanelle is a single mother of 3-year old twins. She is going to school and also working part-time. She earns $18,000 in 2022. She also receives $2,000 per month in child support. Her child care costs are $7,500 per year for each child. How much can she deduct on her 2022 tax return? $7,500 $0, since the child support exceeds the child care costs. $16,000 $12,000 $15,000
Caroline has a net income of 80000. she has received her T4 in the middle of February and she knows she might have to pay a significant tax amount. She is an employee and she is also a mother of one child. calculate her total federal tax payable