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- Kevin is a 48-year-old nurse who earns an annual salary of $95,000. His employer provides group-term life insurance coverage equal to twice the annual salary for all employees. The annual amount of income for each $1,000 of taxable insurance coverage for an individual 48 years old is $1.80. How much gross income must Kevin report for this benefit? (Round answer to O decimal places, e.g. 125.) Income $Mario, a single taxpayer with two dependent children, has the following items of income and expense during 2020: Gross receipts from business $144,000 Business expenses 180,000 Net capital gain 22,000 Interest income 3,000 Itemized deductions (state taxes, residence interest, and contributions) 24,000 a. Determine Mario's taxable income or loss for 2020. Adjusted gross income Less: itemized deductions Less: Deduction for qualified business income Loss b. Indicate which items are adjustments to taxable income or loss when computing an NOL. Business receipts Business Expenses Net capital gain Interest income Itemized deductions c. Determine Mario's NOL for 2020. Mario's NOL is ?Susanna is single with taxable income in 2019 of $188,225 of which $130,000 is attributable to her consulting sole proprietorship. She paid W-2 wages of $60,000 to her employees. Compute her qualified business income deduction.
- In December of 2018, Jack made a gift of $2,000,000 to Suzy. At the same time in December of 2018, Jack also transferred his existing $1,000,000 term life insurance policy into an irrevocable trust of which Suzy is the beneficiary. This was a term LI policy; the cost of the 2018 premium was $15,000. Were there taxable gifts? If yes, what is the amount of the taxable gifts to be reported on the gift tax return?Aa.63. Ms. Ray is age 46 and single. This year, Mr. Ray's retirement savings included a $2,630 employer contribution to a qualified profit-sharing plan account, and a contribution by Ms. Ray to a traditional IRA. Mr. Ray contributed the maximum allowed. Required: Compute Ms. Ray's IRA deduction if current year income includes $71,320 salary.Walter owns a whole-life insurance policy worth $55,800 that directs the insurance company to pay the beneficiary $251,000 on Walter's death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). Required: What value of the policy, if any, will be included in Walter's estate upon his death? Value of policy
- Michelle was paid a retiring allowance of $72,000.00 when her employment was terminated in February 2021. Michelle started with the organization in June 1978 and joined the company pension plan in June 1980. She was fully vested when her employment was terminated. Calculate the portion of Michelle's retiring allowance that will be reported as non- eligible on her T4 information slip.alaries and Wages (LO 2.2) Kristen, a single taxpayer, receives two 2020 Forms W-2 from the two employers she worked for during the year. One Form W-2 lists her wages in Boxes 1, 3, and 5 as $18,700. Her other employer's Form W-2 has $43,000 in Box 1 but only $46,500 in both Box 3 and Box 5. Kristen participated in the second employer's 401(k) plan. She also received health care from her second employer. Lastly, her second employer provided $30,000 of group term life insurance to Kristen. a. What amount should Kristen report as taxable wages in 2020?$fill in the blank e77cb3fccfa703d_1 b. What could explain the difference between Box 1 wages and Boxes 3 and 5 on her second employer's W-2? It would appear that Kristen made $fill in the blank b48564f5cfeb03e_1 of contributions toward her employer's 401(k) plan. The health care and group term life create a difference between Box 1 and wages taxable for Social Security and Medicare in Boxes 3 and 5.Julie's gross salary is 950,000; mandatory contributions is 50,000. Compute for the following: a. gross compensation? b. exclusions from gross income c.taxable compensation
- Chad and Jason Roberts paid $8,500 during the year for childcare for their three children, aged 2, 6 and 11. Chad's annual salary was $12,000 and Jason's annual salary was $42,000. Chad can deduct the $8,500 paid from his income. a) True b) False The entire amount of retiring allowance received must be included in income, even if some part of the allowance was transferred to an RRSP. a) True. b) False The amount earned in a Tax Free Savings Account (TFSA) is not subject to taxation; however, the withdrawals from a TFSA are taxed in the hands of the recipient. a) True b) False int) MacBook ProK a married taxpayer, makes the following gifts during the current year (2022): $18,000 to her church, $72,000 to her daughter, and $44,000 to her husband. Requirement What is the amount of Hannah's taxable gifts for the current year (assuming she does not elect to split the gifts with ther spouse)? (To arrive at taxable gifts, a $16,000 annual exclusion is allowed per donee for 2022. Complete all input fields Enter a "0" for any zero amounts.) Gift to daughter Gift to husband Total gift given ... Taxable giftAt the time of Mateo's death, he was involved in the transactions described below: Mateo was a participant in his employer's contributory qualified pension plan. The plan balance of $2,000,000 is paid to Olivia, Mateo's daughter and beneficiary. The distribution consists of the following: Employer contributions $900,000 Mateo's after-tax contributions 600,000 Income earned and accumulated by the plan 500,000 Mateo was covered by his employer's group term life insurance plan for employees. The $200,000 proceeds are paid to Olivia, as designated beneficiary. a. What is the total amount (of the items above) that is included in Mateo's gross estate? b. What is the total amount (of the items above) that is included in Mateo's gross estate if Olivia were Mateo's surviving spouse rather than his daughter? The amount included would be _____ and a marital deduction of _____ would be allowed.
