Problem 7-19Education Tax Credits (LO 7.5)Janie graduates from high school in 2021 and enrolls in college in the fall. Her parents (who file a joint return) pay $4,000 for her tuition and fees.a. Assuming Janie's parents have AGI of $172,000, what is the American Opportunity tax credit they can claim for Janie?b. Assuming Janie's parents have AGI of $75,000, what is the American Opportunity tax credit they can claim for Janie?

On first $ 2,000 2,000 =2000*100% On Next $2,000 500 =2000*25% Total credit…

Answered: Problem 7-19 Education Tax Credits (LO…

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...
Problem 7-1 Child Tax Credit (LO 7.1) Calculate the total 2021 child and other dependent credit for the following taxpayers. Round any division "up" to the nearest whole number. a. Jeremy is a single (head of household) father with $80,100 of AGI and has a dependent 8-year-old son: 3,000 ✓ Feedback ►Check My Work b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool (under the age of 6) children: 5,000 X Feedback ►Check My Work c. James and Apple have AGI of $430,300, file jointly, and claim three dependent children (ages 7, 10, and 19): 2,950 ✓ Feedback Check My Work
Problem 7-6Earned Income Credit (LO 7.2) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2023, Diane's wages are $21,000 and she receives dividend income of $1,200. Other Than Joint Filers Joint Filers QualifyingChildren Phase-outBegins Phase-outEnds Phase-outBegins Phase-outEnds None $9,800 $17,640 $16,370 $24,210 1 21,560 46,560 28,120 53,120 2 21,560 52,918 28,120 59,478 3 or more 21,560 56,838 28,120 63,398 Calculate Diane's earned income credit using the EIC table in Appendix B.
Larry purchased an annuity from an insurance company that promises to pay him $6,500 per month for the rest of his life. Larry paid $626,340 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $6,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. Problem 5-59 Part-c (Algo) c. What are the tax consequences if Larry dies just after he receives the 100th payment?
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
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.
Problem 7-11 Child 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. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) 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 on her total credits.

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