Problem 7-11Child and Dependent Care Credit (LO 7.2, 7.3)Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Claritapays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all fromwages) for the year is $21,000 and she takes the standard deduction.Assume that Clarita's earned income is $70,000. Determine the net effect of the additional income onher total credits.

Child and dependent care credit: According to IRS, the person ( who incurred any expenses for the…

Answered: Problem 7-11 Child and Dependent Care…

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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Mini Problem 2 Wayne and Wanda are filing MFJ with a 4-year-old dependent child. Wayne worked full time and earned $25,000. Wanda became a full-time student for the fall term (Aug thru Dec) and they have no other income. Their principal place of abode was in the U.S. for the entire tax year. Their federal taxable income was $2,300 and their federal tax liability before any credits is $231. While Wanda was a student, they paid $3,000 for childcare. What is the amount of line 6 from their Form 24417 page Select one: a. $0 b. $231 Ⓒc. $375 O d. $625 Oe. None of these 4 Finish attempt...
A-2
6. A married couple are calculating their federal income tax using the tax rate tables: Then Estimated Taxes Are If Taxpayer's Income Is Between So $16,700 $67,900 $137,050 $208,850 $372,950 But Not Over $16,700 $67,900 $137,050 $208,850 $372,950 Base TaxRate $0 10% $1,670.00 15% $9,350.00 25% $26,637.50 28% $46,741.50 33% $100,894.50 35% S0 $16,700 $67,900 $137,050 $208,850 $372,950 How much tax will they have to pay on their taxable income of $202,000? (4
Qualifying Dependents (LO 1.6) In each of the following situations, determine whether the taxpayer(s) has/have a dependent and if so, the total amount of the child tax credit and other dependent credit for 2021 (assuming no advance payments or limitations apply). If an amount is zero, enter "0" a. Donna, a 20-year-old single taxpayer, supports her mother, who lives in her own home. Her mother has income of $1,350. b. William, age 43, and Mary, age 45, are married and support William's 19-year- old sister, who is not a student. The sister's income from a part-time job is $4,300, c. Devi was divorced in 2019 and receives child support of $250 per month from her ex-husband for the support of their 8-year-old son, John, who lives with her. Devi is 45 and provides more than half of her son's support. d. Wendell, an 89-year-old single taxpayer, supports his son, who is 67 years old, lives with him and earns no income. e. Wilma, age 65, and Morris, age 66, are married. They file a joint…
Problem 8 - 70 (LO 8-4) (Algo) Skip to question [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 18, at year - end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2023 for his daughters under each of the following alternative situations? Use Exhibit 8 - 8. Problem 8 - 70 Part a (Algo) a. His AGI is $103,300. b. His AGI is $431, 000. EXHIBIT 8 -8 Child Tax Credit Phase - Out Threshold S EXHIBIT 8-8 Child Tax Credit Phase-Out Threshold Filing Status Married filing jointly Married filing separately Head of household and single Phase-Out Threshold $400,000 200,000 200,000
9
Tax form 1040...12a, 12b...how do you compute those numbers 13a, 13b is the child tax credit..is it $3000 for each child and eligible dependent
Problem 7-21 (Algorithmic) Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $2,000 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $2,000 as a foreign tax credit. Their tax bracket is 28 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? If required, round your answer to the nearest dollar. The foreign tax deduction will result in a s tax benefit where as claiming the foreign tax credit yields a $ tax benefit. Therefore, the taxpayers should
The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Alicia, age 27, is a single, full-time college student. She earns $13,200 from a part-time job and has taxable interest income of $1,450. Her itemized deductions are $845. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 Calculate Alicia's taxable income for 2020. $fill in the blank 1
Problem 6-20 (Algorithmic) Computing the 0.9 Percent Medicare Tax for High-Income Taxpayers (LO 6.8) Married taxpayers Otto and Ruth are both self-employed and file a joint return. Otto earns $380,600 of self-employment income and Ruth has a self-employment loss of $28,700. How much 0.9 percent Medicare tax for high-income taxpayers will Otto and Ruth have to pay with their 2021 income tax return? If required, round your final answer to nearest dollar.
Beatty Young, an American, is married with two children, aged 1 and 9 as of 31 December 2020. Both her children are Americans. Beatty has been working in Singapore for the past five years and her 65-year-old mother lives with her in Singapore to help look after the grandchildren. Her elderly mother has no income of her own. Which of the following reliefs and rebates can Beatty claim? (i) Qualifying child relief.(ii) Working Mother child relief.(iii) Parent relief(iv) Grandparent caregiver relief(v) Parenthood tax rebate Question 2 options: 1) i, ii and iii only 2) i and ii only 3) i and iii only 4) All of the above.
Earned Income Credit. Carolyn is unmarried and has one dependent child, age 6, who lives with her for the entire year. In 2015, she has income of $16,000 in wages and $6,000 in alimony. Her AGI is $22,000. a. What is Carolyn’s tentative earned income credit (before phase out)? b. what is Carolyn’s allowable earned income credit? c. If Carolyn has no income tax liability (before the earned income credit is subtracted), is she entitled to a refund in the current year? d. How will your answers to Part a and b change if Carolyn is married filing a joint return

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