Tina is a single mother. /she has a son,Jared who is 2 yes old because Tina worksfull time she needs to have a babysitterwatch jared for 8 hours a day. Tina mays100,000 per year but spends 7,500 per yearjust on babysitting fir Jared. What if any taxbenefits can tina get based on thisexpense?

The Child and Dependent Care Benefits is a tax benefit offered by the IRS where in the tax payer…

Answered: Tina is a single mother. /she has a…

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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Arnie is single and receives Social Security beneifits. His modified AGI is $27,000 and his Social Security benefits are $7,200 per year. How much of his Social Security benefits are taxable?
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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. Which of the following strategies is most tax efficient for your situation? ______ a.Invest all your income inside your regular taxable investment account. b.First, fully fund your 401 (k) account, then invest the rest in the IRA and Roth IRA account, finally invest the remaining money, if any,in your regular taxable investment account. c.Fully fund your 401 (k) account, 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) account, finally invest the remaining money, if any, in your regular taxable investment account.
1. Mary and Sue both work for WAWA. They both make $50,000 and they also each have $1000 a year in health care expenses. Mary deposits $1000 a year into a dependent care flexible spending account while Sue does not. They both have a tax rate of 15%. How much does Mary save vs. Sue in a given year?
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Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15. Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation. The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning. Superannuation Sue (20% Tax Free) 270,000 Sue’s Superannuation asset allocation Investment Asset Allocation Performance p.a. after tax Australian Share 50% 4% Cash & Fixed Interest 15% 1.4% International Shares 30% 10.80% Property 5% 3.10% Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation…
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Sam and Margaret are 62 and 59 respectively. They are married, lived together all year, but prefer to file taxes separately. Both work and each have a traditional IRA. Sam is mostly retired but Margaret works full-time. In 2022, Sam earned $4,500 in wages from working at Walmart as a Greeter. He also received $29,000 in annuity income. Margaret earned $65,000 in wages. What is the maximum Sam can contribute to his IRA?

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Tina is a single mother. /she has a son, Jared who is 2 yes old because Tina works full time she needs to have a babysitter watch jared for 8 hours a day. Tina mays 100,000 per year but spends 7,500 per year just on babysitting fir Jared. What if any tax benefits can tina get based on this expense?