Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside $17,775 Meals for Lawrence at Lakeside 3,555 Doctor and nurse fees at Lakeside 2,666 Cable TV service for Lawrence's room at Lakeside 356 Total $24,352 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?

Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside $17,775 Meals for Lawrence at Lakeside 3,555 Doctor and nurse fees at Lakeside 2,666 Cable TV service for Lawrence's room at Lakeside 356 Total $24,352 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?

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

During the 2020 tax year, Frank (age 65) and Betty (age 63) paid the following medical expenses: Medical insurance $425 Prescription medicines and drugs 364 Hospital bills 2,424 Doctor bills 725 Prescription Eyeglasses for Frank's dependent mother 75 Doctor bills for Betty's sister, who is claimed as a dependent by Frank and Betty 220 In addition, during 2020, they drove 700 miles for medical transportation in their personal automobile. Their insurance company reimbursed Frank and Betty $1,420 during the year for the medical expenses. If their adjusted gross income for the year is $25,400, calculate their medical expense deduction. Use the Medical and Dental Expenses section of Schedule A reproduced below. Enter all amounts as positive numbers. If required, round your answers to the nearest dollar. Caution. Do not include expenses reimbursed or paid by others. MedicalandDentalExpenses 1 Medical and dental expenses (see instructions)…
Edna spent the last 80 days of 2021 in a nursing home. The cost of the services provided to her was $24,000 ($300 per day). Medicare paid $14,000 toward the cost of her stay. Edna also received $14,000 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $400. If the amount is zero, enter 0. What is the effect on Edna's gross income? The amount of her exclusion is $ and the amount included in her gross income is $
Each of the following individuals purchased their property five years ago with the intention of using it as a vacation home. They have all rented out their property during periods when they could not get away. Which taxpayer has taxable income from renting their property in the current year? (a) Deborah. She used her beach cottage personally for 40 days and rented it to a friend for 13 days at fair rental value. (b) Lillian. She used her forest cabin personally for 10 days. She rented the property at fair rental value for 12 days using an online platform. She received a Form 1099-K, Payment Card and Third Party Network Transactions, reporting a gross payment amount of more than $600. (c) Kevin. He used his mountain lodge personally for 34 days and allowed his brother to stay there rent-free for 10 days. (d) Terrell. His lakefront condominium was not used for personal purposes at any time during the year. He rented the property to a co-worker at fair rental value for 18 days.
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,250 in child care expenses so that she would be able to work. Of this amount, $620 was paid to Adrienne's mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,500 from her jewelry business. In addition, she received child support payments of $20,500 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. What amount, if any, of child and dependent care credit can Adrienne claim?
Ross and Rachel are married and have two children. They are covered by a comprehensive medical and major medical policy with a $200 embedded deductible per person, an 80/20 coinsurance provision, and an annual out-of-pocket family limit of $3,000. Ross dislocated his shoulder in November and needed surgery to fix the injury, which cost $35,000. Ross, Rachel, and each of the children had an annual physical exam earlier in January, which cost $250 each. Aside from these expenses, there were no other health care costs incurred by the family this year. How much will Ross have to pay out of pocket to cover the costs of his surgery? a. $0 b. $2,160 c. $2,750
Compute the additional Medicare tax for the following taxpayers. If required, round your answers to the nearest dollar. a. Mario, who is single, earns wages of $307,600. His additional Medicare tax is $276,840 b. George and Shirley are married and file a joint return. During the year, George earns wages of $276,400, and Shirley earns wages of $414,600. Their additional Medicare tax is $ c. Simon has net investment income of $59,960 and MAGI of $299,800 and files as a single taxpayer. Simon's additional Medicare tax is $
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year (2021). She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income. a. Shauna paid $4,688 for medical expenses for care related to a broken ankle. Also, Shauna's boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle. b. Shauna paid a total of $3,420 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,020 for the surgery (she received no insurance reimbursement). She also incurred $458 of other medical…
Thomas is age 40 and was widowed in 2019. He has a daughter, Christina, age 6. • Thomas provided the entire cost of maintaining the household and over half of the support for Christina. In order to work, he pays childcare expenses to Downtown Daycare. • Thomas purchased health insurance for himself and his daughter through the Marketplace. He received a Form 1095-A.. Thomas and Christina are U.S. citizens and lived in the United States all year in 2022. 30. What is Thomas's most advantageous filing status? a. Single b. Married Filing Separately c. Head of Household d. Qualifying Surviving Spouse (QSS) 31. Thomas's adjusted gross income on his Form 1040 is $ 32. Thomas can claim the following credits on his tax return. a. Child Tax Credit b. Child and Dependent Care Credit c. Premium Tax Credit d. All of the above 33. Thomas's Retirement Savings Contributions Credit on Form 8880 is $ 34. The total amount of Thomas's advanced payment of premium tax credit for 2022 is $_ 35. Thomas's…
Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane’s Social Security num-ber is 123-45-6781. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. Jane has never owned or used any virtual currency. During 2019, Jane had the following income and expense items: a. $100,000 salary from Legal Services, Inc. b. $20,000 gross receipts from her typing services business. c. $700 interest income from Third National Bank. d. $1,000 Christmas bonus from Legal Services, Inc. e. $60,000 life insurance proceeds on the death of her sister. f. $5,000 check given to her by her wealthy aunt. g. $100 won in a bingo game. h. Expenses…
Adrienne is a single mother with a six-year-old daughter who lived with her during the entire year. Adrienne paid $2,350 in child care expenses so that she would be able to work. Of this amount, $660 was paid to Adrienne’s mother, whom Adrienne cannot claim as a dependent. Adrienne had net earnings of $1,700 from her jewelry business. In addition, she received child support payments of $20,700 from her ex-husband. Use Child and Dependent Care Credit AGI schedule. Required: What amount, if any, of child and dependent care credit can Adrienne claim?
Carol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 8. The over the counter sinus medication is a qualified medical expense for HSApurposes. True False
Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside Meals for Lawrence at Lakeside Doctor and nurse fees at Lakeside Cable TV service for Lawrence's room at Lakeside Total $20,700 4,140 3,105 414 $28,359 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?