richard and alice are divorced and under the terms of their written divorce agreement signed on december 30, 2008, richard was required to pay alice $1500 per month of which $600 was designated as child support. he made 12 such payments in 2015. additionally, richard voluntarily paid alice S1200 per month for 12 months of 2015, no portion of which was designated as child support. assuming that alice has no other income, her tax return for 2015 should show gross income of: a. So b. S9600 c S10800 d. $18000 C. e none of the above

richard and alice are divorced and under the terms of their written divorce agreement signed on december 30, 2008, richard was required to pay alice $1500 per month of which $600 was designated as child support. he made 12 such payments in 2015. additionally, richard voluntarily paid alice S1200 per month for 12 months of 2015, no portion of which was designated as child support. assuming that alice has no other income, her tax return for 2015 should show gross income of: a. So b. S9600 c S10800 d. $18000 C. e none of the above

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

Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are gainfully employed and earn salaries in 2021 as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, Jim and Mary Jean pay Eleanor (Jim’s mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Jim and Mary Jean file a joint Federal income tax return. Compute their credit for child and dependent care expenses.
John and Jill are a de facto couple who purchase a family home and a rental property in January 2018. They separate in August that year, with Jill getting the family home and John getting the rental property. John initially decides to keep the rental property as an investment, but later changes his mind when he finds it hard to pay the weekly outgoings on his own. John sells the rental property in January 2019. Is the sale subject to tax?
Ian, 37, and Isabella, 36, are married and file a joint tax return. They have one child, Ingrid (Isabella's daughter from a prior marriage and is claimed as a dependent (QC) on Ian & Isabella's joint return). In 2020, Isabella and Ian had the following items: Salary (Isabella): $83,000 Salary (Ian): $13,000 Scholarship: $6,500 ($2,500 used to pay Ian’s tuition at an eligible educational institution, $1,000 used to buy required textbooks, and $3,000 used to pay room and board) California Paid Family Leave (PFL): $2,000 Inheritance from Isabella's father: $100,000 Child support payments received from Isabella's ex-husband: $6,000 What is Ian and Isabella’s (federal) gross income for 2020? Exclude the maximum amount of scholarship income possible.
Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are employed outside the home and, during 2021, earn salaries as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses? $???
Harry and Carrie Franklin are married and choose to file Married Filing Jointly on their 2020 tax return. Harry and Carrie have one son Billy and a newborn baby Cristina born in 2020. Carrie was a kindergarten teacher at a private school through May and decided not to return after the birth of her child. Carrie worked a total of 800 hours in 2020 (January - May). She spent $375 on unreimbursed classroom expenses while she was employed. In order to work, the Franklins paid child care expenses of $1,500 through May for Billy. They also paid $750 in child care expenses for Cristina while Carrie volunteered in Billy’s class in November. How much are Harry and Carrie able to deduct for educator expenses in any?
Brian and Kim have a 12-year-old child, Stan. For 2018, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan’s parents elected to report Stan’s income on his parents’ return, what would the tax on Stan’s income be?$
Answer the following questions: Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $700 a month until their daughter is 18 years of age. At that time, the required payments are reduced to $450 per month. (a) How much of each $700 payment may be deducted as alimony by Joan? (b) How much of each $700 payment must be included in Bill’s taxable income? ____________________ (c) How much would be deductible/included if the divorce agreement were dated 2021?
Charles and his wife Diana divorced on May 1, 2022. During 2023, Charles made court-ordered alimony payments in the amount of $7,000. His alimony payments are: A) Included in the income on Diana's return B) Excluded from the income on Diana's return C) Calculated as a deduction on Charles' return OD) Categorized as a credit on Charles' return Back Submit All Ne
Sharon Jones is single. During 2022, she had gross income of $159,800, deductions for AGI of $5,500, itemized deductions of $14,000 and tax credits of $2,000. Sharon had $22,000 withheld by their employer for federal income tax. She has a tax (due/refund) rounded to the nearest whole dollar of $.
Erin is the landlord of a single-family home, which she leased to Carlos in February 2022. Prior to moving in, Carlos paid $1,000 for the first month's rent and an additional $1,000 for the last month's rent (for a total of $2,000 advance rent). He then paid $10,000 in rent during the remainder of the tax year. What amount does Erin include in gross rental income for this property in 2022?
Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return andexpects her taxes to be the same for 2020. Which of the following statements is correct?Select one:a. Juanita will not be required to pay estimated tax payments for 2020.b. Juanita will not be subject to self-employment tax.c. Juanita should take out a loan to pay her 2020 taxes when she files the return.d. Juanita should make estimated tax payments to avoid an underpayment penalty.
Peter and Lois were divorced in March of tax year 2016; there have been no modifications to their divorce decree. In accordance with the divorce decree, Lois transferred the title of their home to Peter. The home, which had a fair market value of $900,000, was subject to a $400,000 mortgage that had 20 more years to run. Monthly mortgage payments amount to $2,500. Under the terms of the settlement, Lois is obligated to make the mortgage payments on the home for the full remaining 20-year term of the indebtedness, regardless of how long Peter lives. Lois made 12 monthly mortgage payments in the curent year. What amount is taxable as alimony in Peter's 2022 tax return?a. $0b. $ 30,000c. $500,000d. $530,000