Steven has an RRSP contribution limit of $17,120 in 2022. In February he contributes $10,000 and another $10,000 in April (30th). How much tax liability will he be subject to as a result of this over-contribution? Assume Steven has never over- contributed before. $230.40 $70.40 There would be no tax liability $88

Steven has an RRSP contribution limit of $17,120 in 2022. In February he contributes $10,000 and another $10,000 in April (30th). How much tax liability will he be subject to as a result of this over-contribution? Assume Steven has never over- contributed before. $230.40 $70.40 There would be no tax liability $88

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

George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and his IRA is now worth $25,000. He is planning on converting the entire balance to a Roth IRA account. George's marginal tax rate is 24 percent. Note: Leave no answers blank. Enter zero if applicable. Problem 13-76 Part a (Static) a. What are the tax consequences to George if he takes $25,000 out of the traditional IRA and contributes the entire amount into a Roth IRA one week after receiving the distribution? Tax payable Penalty Total $ SA 6,000 2,500 8,500
Exercise 12-24 (LO. 6) In 2023, Miranda records net earnings from self-employment of $168,500. She has no other income. Determine the amount of Miranda's self-employment tax and her AGI income tax deduction. In your computations, for the tax liability, round interim amounts to two decimal places and the final answer to the nearest whole dollar. For the AGI deduction, if necessary, use amounts that have been rounded to the nearest dollar. Miranda's self-employment tax is s X and she has a s X deduction for AGI.
1. PLEASE SHOW ALL WORK SO I CAN FOLLOW ALONG! THANK YOU SO MUCH! 56,000 IS NOT THE ANSWER. I REPEAT 56,000 IS NOT THE ANSWER. I HAVE SEEN THIS ANSWER BEFORE. PLEASE DO NOT GIVE ME 56,000 BECAUSE IT IS NOT CORRECT.
Michel has heard of some Canadians that are millionaires with their TFSA’s. If that were the case and they withdrew $1 million dollars from their TFSA account in 2023, how much tax would they pay on the withdrawn funds if they were in a 53.31% marginal tax bracket? Tax calculation on $1 million TFSA withdrawal:
George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and his IRA is now worth $25,000. He is planning on converting the entire balance to a Roth IRA account. George's marginal tax rate is 24 percent. Note: Leave no answers blank. Enter zero if applicable. Problem 13-76 Part b (Static) b. What are the tax consequences to George if he takes $25,000 out of the traditional IRA, pays the taxes due from the traditional IRA distribution, and contributes what's left from the distribution to the Roth IRA one week after receiving the distribution? Tax payable Penalty Total $ $ A 6,000 (600) 5,400
7. Juan, the 70-year old widowed father of Rodrigo is earning P10,000.00 a month. As his income is barely enough just for medicines alone, Juan lives with and is dependent for his chief support upon Rodrigo who is single. How much basic personal and additional exemptions could Rodrigo claim when he files his income tax return? P50,000 P25,000 none P75,000
Troy graduated in civil engineering from Concordia two years ago and decided to work in the remote area of northern Quebec. He is making great money and saving it all. What is Troy's average rate of tax if in 2021 he paid taxes of $58,232.74 on his gross income earned of $135,000? (ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings) A 43.14% В 38.09% 49.97% D 33.29% 29.35%
9 It is February 2021 and Sandra is looking to maximize her RRSP contribution for a deduction on her 2020 income tax return. She has never been part of a Registered Pension Plan. What is the maximum amount that she can contribute to her RRSP and claim on her 2020 personal income tax returns (include carry-forward amounts)? She has provided you with the following information: -Salary in 2018 $10,000 (part-time employment to help with her tuition when she was 19). -Salary in 2019 $80,000. (full-time employment, she was 20). -Salary in 2020 $85,000. (full-time employment, she was 21). -Current salary in 2021 $90,000. (full-time employment, she is 22). -RRSP contribution made previously and deducted on her 2019 tax return for $1,300 Registered Retirement Savings Plan (RRSP): Annual Limits Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum. Annual maximum contribution limit A B C Year 2018 2019…
H5.
John makes $300,000 as a single filer. How much is he likely to pay in taxes using marginal tax rate 2024 tax brackets Tax rate 10% 12% 22% 24% 32% 35% 37% Single filers $11,600 or less $11,601 to $47,150 $47,151 to $100,525 $100,526 to $191,950 $191,951 to $243,725 $243,726 to $609,350 $609,351 or more Source: Internal Revenue Service O $75,375 $19696.25 $105000 $72000 Married couples filing jointly $23,200 or less $23,201 to $94,300 $94,301 to $201,050 $201,051 to $383,900 $383,901 to $487,450 $487,451 to $731,200 $731,201 or more Married couples filing separately $11,600 or less $11,601 to $47,150 $47,151 to $100,525 $100,526 to $191,150 $191,151 to $243,725 $243,276 to $365,600 $365,601 or more Head of household $16,550 or less $16,551 to $63,100 $63,101 to $100,500 $100,501 to $191,150 $191,151 to $243,700 $243,701 to $609,350 $690,351 or more
Exercise 15-19 (LO. 3, 4) In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $fill in the blank 1Tax liability (round to the nearest dollar): $fill in the blank 2
N4 Samuel invested $10,000 a year into his retirement plan from his before tax earnings (that is, he received a deduction for these contributions and was not taxed on the income). His employer contributed $5,000 a year to Samuel’s retirement fund. After 30 years of contributions, Samuel retires and receives a distribution of $900,000, the balance in his retirement fund. Samuel must include what amount in gross income? Group of answer choices $ 0 $450,000 $600,000 $900,000