Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 37P
To determine
Write a letter to Person B and Person E in which you make and explain a recommendation on filing status for 2019
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2019, Susan’s income is $41,214 and Stan’s is $12,000 and both are self-employed. They also have $500 in interest income from tax-exempt bonds. The Collins enrolled in health insurance for all of 2019 through their state exchange but did not elect to have the credit paid in advance. The 2019 Form 1095-A that the Collins received from the exchange lists the following information:Annual premiums $9,800Annual premium for the designated silver plan in the state $10,800 Compute the Collins’ premium tax credit for 2019.
Nicholas died on December 27, 2020. His wife, Jessica, has not remarried. On January 31, 2021, Jessica received a check from Party Central Inc. and a letter explaining that the check represents a final payment for contract work Nicholas performed for them in 2020. What is the correct and most favorable method of reporting this income?
As ordinary income on Jessica's 2021 individual tax return.
As income paid to Nicholas's estate, reported on Form 1041.
On the couple's jointly filed 2020 return. If this was not included in the originally filed return, Jessica should file an amended return to include this income.
On a 2021 final tax return for Nicholas that Jessica files on his behalf.
In late 2019, Randy and Rachel Erwin paid $7,000 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. In 2020, the year in which the adoption becomes final, they pay an additional $8,000. Their AGI in 2020 is $135,000.
a. Randy and Rachel are eligible for a $fill in the blank 1 adoption credit in 2020.
b. Assume the same facts but the taxpayer's AGI for 2020 is $220,000. Round any division to three decimal places and round your final answer to the nearest dollar.
Randy and Rachel are eligible for a $fill in the blank 2 adoption credit in 2020.
Chapter 10 Solutions
Individual Income Taxes
Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - LO.2 David, a sole proprietor of a bookstore, pays...Ch. 10 - LO.2 Jayden, a calendar year taxpayer, paid 16,000...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - Prob. 9DQCh. 10 - Prob. 10DQ
Ch. 10 - LO.5 Thomas purchased a personal residence from...Ch. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - LO.6, 8 William, a high school teacher, earns...Ch. 10 - LO.2 Barbara incurred the following expenses...Ch. 10 - Prob. 16CECh. 10 - Prob. 17CECh. 10 - Prob. 18CECh. 10 - Prob. 19CECh. 10 - Prob. 20CECh. 10 - Prob. 21CECh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - LO.2 Paul suffers from emphysema and severe...Ch. 10 - LO.2 For calendar year 2019, Jean was a...Ch. 10 - LO.2 During 2019, Susan incurred and paid the...Ch. 10 - In May, Rebeccas daughter, Isabella, sustained a...Ch. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - Prob. 34PCh. 10 - On December 27, 2019, Roberta purchased four...Ch. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - LO.2, 3, 4, 5, 6, 7 Linda, who files as a single...Ch. 10 - LO.2, 3, 4, 5, 6, 7 For calendar year 2019, Stuart...Ch. 10 - Prob. 41CPCh. 10 - Marcia, a shareholder in a corporation with stores...Ch. 10 - Prob. 4RPCh. 10 - Prob. 1CPACh. 10 - Prob. 2CPACh. 10 - Prob. 3CPACh. 10 - Kurstie received a 800 state income tax refund...Ch. 10 - Which of the following would preclude a taxpayer...Ch. 10 - Prob. 6CPA
Knowledge Booster
Similar questions
- Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2019, they earn wages of 34,000 and no other income. Determine the amount of their earned income credit for 2019.arrow_forwardJessica and Carl were married on July 1,2019. What are their options for filing status for their 2019 taxes? _________________________________________________________________________________________________________________________________________________________________________arrow_forwardIn each of the following independent situations, determine Winstons filing status for 2019. Winston is not married. a. Winston lives alone, but he maintains a household in which his parents live. The mother qualifies as Winstons dependent, but the father does not. b. Winston lives alone but maintains a household in which his married daughter, Karin, lives. Both Karin and her husband (Winstons son-in-law) qualify as Winstons dependents. c. Winston maintains a household in which he and a family friend, Ward, live. Ward qualifies as Winstons dependent. d. Winston maintains a household in which he and his mother-in-law live. Winstons wife died in 2018. e. Same as part (d), except that Winstons wife disappeared (i.e., she did not die) in 2017.arrow_forward
- During 2019, Rick and his wife, Sara, had the following items of income and expense to report: a. Assuming that Rick and Sara file a joint return, what is their taxable income for 2019? b. What is the amount of Rick and Saras NOL for 2019? c. c To what years can Rick and Saras NOL be carried? d. Based on your compulations, identify the components of their NOL. What is the rationale for excluding the items that do not affect the NOL compulation?arrow_forwardJoan, who was divorced in 2019, had filed a joint tax return with her husband in 2018. During 2019, she did not remarry and continued to maintain her home in which her five dependent children lived. In the preparation of her tax return for 2019, Joan should file as: A single individual A qualifying widow(er) Head of household Married, filing separately None of the abovearrow_forwardLaura and Leon were granted a divorce in 2019. In accordance with the decree, Leon made the following payments to Laura in 2019: Child support payments contingent on the age of the child $4,000 Annual cash payments, other than child support, specified as alimony in the divorce agreement $6,000 How much should Laura include in her 2019 taxable income as alimony?arrow_forward
- Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2019, they received Social Security benefits of $10,000. Both Alton and Clair are covered by Medicare. Alton's Social Security number is 111-11-1119, and Clair's is 123-45-6786. They reside at 210 College Drive, Columbia, SC 29201. Alton, who retired on January 1, 2019, receives benefits from a qualified pension plan of $2,750 a month for life. His total contributions to the plan (none of which were deductible) were $168,250. In January 2019, he received a bonus of $2,000 from his former employer for service performed in 2018. No income taxes were withheld on this bonus by his former employer (Amalgamated Industries, Inc.; EIN 12-3456789; 114 Main Street, Columbia, SC 29201). Although Amalgamated Industries, Inc., accrued the bonus in 2018, it was not paid until 2019. Clair, who retired on December 31, 2018, started receiving benefits of $1,400 a month on…arrow_forwardIn 2020, Henry and Eva paid $2,500 of qualified domestic adoption expenses. The adoption did not become final until 2021, and they paid an additional $3,200 in qualified expenses that year. The child they adopted did not have any special needs. Their modified adjusted gross income was $165,000. What is the maximum amount they may be eligible to claim for the Adoption Credit on their 2021 return?arrow_forwardShonda and Andre adopted a child with special needs in a domestic adoption. They had $10,000 in adoption expenses in 2021, and the adoption was finalized on December 15, 2021. How much can they claim in 2021arrow_forward
- Nigel and Sylvia are married and are both residents of, and domiciled in, California. On August 31 of 2022, they separated and filed for divorce with no intentions of reconciling. Nigel earned $4,000 each month during the year and Sylvia earned $2,000 a month from June through the end of the year. A joint bank account paid them interest of $200 each month. They will file married/RDP filing separately. How much income will be reported on Sylvia's tax return? $46,000+ $1,000 = 849,200 Nigel $4,000/m x 12 Sylvice $2,000/m x 28= $200/m x 12 $2,400 $7,000 $8,200 $28,200 $32,200 Mark for follow up 519,000 $1,200 20 13,008) 2,000 X 7= $14,000 + 200X (12 12,000 X 12 200arrow_forwardHere is another question: – Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary $38,000 Business net income $110,000 Interest income $400 $1,200 $2,200 Deductions for AGI $2,400 $14,000 Medical Expenses $10,427 $3,358 State income tax $900 $1,800 Real Estate tax $3,800 Mortgage Interest $4,200 Unreimbursed employee expenses $1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2018. Bart and Elizabeth reside at 2003 highland Drive, Durham, NC 27707.arrow_forwardSusan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2020 through their state exchange but did not elect to have the credit paid in advance. The 2020 Form 1095-A that the Collins received from the exchange lists the following information: Annual premiums $9,800 Annual premium for the designated silver plan in the state $10,800 Federal Poverty Line for a family of four $25,750 Compute the Collins' premium tax credit for 2020.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT