Rafael and Lucy, married taxpayers, each contribute $2,900 to their respective § 401(k) plans offered through their employers. The AGIreported on the couple's joint return is $38,000.Click here to access the "Saver's" Credit Rate and AGI Thresholds Table.As a result, they may claim a credit for their retirement plan contributions of $

401(k) refers to retirement plan that is offered by American employers for employees interested in…

Answered: Rafael and Lucy, married taxpayers,…

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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am.107.
Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,600. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,500. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $2,000. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,300. Retirement Savings Contributions Credit
Tim and Martha paid $8,100 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $2,900 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $56,600 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: a. What amount of child and dependent care credit can they claim on their Form 1040? b. How would your answer differ (if at all) if the couple had AGI of $36,900 that was earned entirely by Martha? a. Child and dependent care tax credit b. Child and dependent care tax credit Amounts
Kathy is 48 years of age and self-employed. During 2018 she reported $522,000 of revenues and $104,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k)? Multiple Choice ___ 455,000. ___ $61,000. ___ $99,309. ___ $105,305.
Define the following: Couples filing jointly (even when participating in a retirement plan at their places of work) can open this type of account as long as their adjusted gross income is less than $193,000.
Mark and carried married and they will file a joint breturn the both work full-time and their total income in 2020 is 89000 all from wages.they have one dependent child aubrey [5] during the year the spent 7000 for aubreys child care . Neith mark now carried recieve any dependent care benefit from employer what amouy may the use to calculate the child care credit
Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert's employer doesn't offer any type of qualified retirement plan. Each spouse contributes $3,100 to a traditional IRA. Required: Compute the AGI on their joint return if AGI before an IRA deduction is $154,000. Compute the AGI on their joint return if AGI before an IRA deduction is $204,600
In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs.What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.) a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages.
Suppose you are28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. If your employer provides the following matching schedule on your contribution to the 401 (k): 100% matching for the first 3% of your salary and then 50% matching for the next 2% of your salary. You plan to work for the current employer for 3-7 years before you start your own business. Which one of the following seems to be the best investment strategy? a.Invest all your income inside your regular taxable investment account. b.First, contribute 5% of your salary to your 401 (k), then invest the rest in your IRAs and Roth IRA account, finally invest the remaining money, if any, in your regular taxable investment account. c.Contribute 5% of your salary to your 401 (k), and then invest all the rest money in your regular taxable investment account. d.First, fully fund your IRA and Roth IRA account, then fund your401 (k),…
Kevin and Shuang have two children, ages 8 and 14. In 2021 they spend $16,200 on eligible employment related expenses for the care of their children after school. Kevin earned a salary of $15,200 and Shuang earned a salary of $68,000. What is the amount of the couple's credit for child and dependent care expenses for 2021? $4,000 $7,600 $8,000 $8,100
Terry and Jennifer, both in their 30s, file a joint income tax return for 2020. Terry’s wages are $26,000 and Jennifer’s wages are $34,000 for the year. Their total adjusted gross income is $60,000, and Joan is covered by a qualified pension plan at work but Terry is not. a. What is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts in 2020? b. If Jennifer's wages are $85,000 for 2020, instead of $34,000, and their adjusted gross income is $111,000, what is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts?
George and Wanda received $29,100 of Social Security benefits this year ($11,000 for George, $18.300 for Wanda). They also received $4,800 of interest from jointly owned City of Ranburne Bonds and dividend income. What amount of the Social Security benefits must George and Wanda include in their gross income under the following independent situations? Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Required: a. George and Wanda file married joint and receive $8,750 of dividend income from stocks owned by George b. George and Wanda file married separate and receive $8,750 of dividend income from stocks owned by George c. George and Wands file married joint and receive $32.200 of dividend income from stocks owned by George d. George and Wanda file married joint and receive $16,100,of dividend income from stocks owned by George Complete this question by entering your answers in the…

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