Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 19, Problem 56P
To determine
Provide suggestions with regard to tax alternatives.
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Jangyoun is a married taxpayer with a dependant 4-year-old daughter. His employer offers a
flexible spending account under which he can choose to receive cash or, alternatively, choose
from certain fringe benefits. These benefits include health insurance that costs $9,000 and
child care that costs $2,600. Assume Jangyoun is in the 28% tax bracket.
A) How much income tax will Jangyoun save if he chooses to participate in the employer's
health insurance plan? Assume that he does not have sufficient medical expenses to itemize
his deductions.
B) would you recommend that Jangyoun participate in the employer's health insurance plan if
his wife's employer already provides comparable health insurance coverage for the family?
C) Would you recommend that Jangyoun participate in the employer-provided child care
option if he has the alternative option of claiming a child care credit of $480?
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.
If your employer provides the following matching schedule on your contribution to the 401 (k): 100% matching for the first 3% of your salary and then 50% matching for the next 2% of your salary. You plan to work for the current employer for 3-7 years before you start your own business. Which one of the following seems to be the best investment strategy?
a.Invest all your income inside your regular taxable investment account.
b.First, contribute 5% of your salary to your 401 (k), then invest the rest in your IRAs and Roth IRA account, finally invest the remaining money, if any, in your regular taxable investment account.
c.Contribute 5% of your salary to your 401 (k), 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),…
Rafael and Lucy, married taxpayers, each contribute $3,400 to their respective § 401(k) plans offered through their employers.
The AGI reported on the couple's joint return is $40,100. Determine their credit for retirement plan contributions (the Saver's
Credit).
Click here to access the "Saver's" Credit Rate and AGI Thresholds Table.
As a result, they may claim a credit for their retirement plan contributions of $
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Taxpayers may claim a nonrefundable credit for certain retirement plan contributions based on eligible contributions to certa
retirement plans, such as traditional and Roth IRAs and § 401(k) plans.
Chapter 19 Solutions
Individual Income Taxes
Ch. 19 - Prob. 1DQCh. 19 - Prob. 2DQCh. 19 - Prob. 3DQCh. 19 - Prob. 4DQCh. 19 - Prob. 5DQCh. 19 - Prob. 6DQCh. 19 - Prob. 7DQCh. 19 - Prob. 8DQCh. 19 - Prob. 9DQCh. 19 - Prob. 10DQ
Ch. 19 - Prob. 11DQCh. 19 - Prob. 12DQCh. 19 - Prob. 13DQCh. 19 - Prob. 14CECh. 19 - Prob. 15CECh. 19 - Prob. 16CECh. 19 - Prob. 17CECh. 19 - Zack, a sole proprietor, has earned income of...Ch. 19 - Prob. 19CECh. 19 - Prob. 20CECh. 19 - Prob. 21CECh. 19 - Prob. 22CECh. 19 - Prob. 23CECh. 19 - Prob. 24CECh. 19 - Prob. 25CECh. 19 - On April 5, 2017, Gustavo was granted an NQSO for...Ch. 19 - Prob. 27PCh. 19 - Prob. 28PCh. 19 - Prob. 29PCh. 19 - Prob. 30PCh. 19 - Prob. 31PCh. 19 - Prob. 32PCh. 19 - Prob. 33PCh. 19 - Prob. 34PCh. 19 - In 2019, Magenta Corporation paid compensation of...Ch. 19 - Prob. 36PCh. 19 - Prob. 37PCh. 19 - Prob. 38PCh. 19 - Prob. 39PCh. 19 - Prob. 40PCh. 19 - Prob. 41PCh. 19 - Prob. 42PCh. 19 - Prob. 43PCh. 19 - Prob. 44PCh. 19 - Carri and Dane, ages 34 and 32, respectively, have...Ch. 19 - Prob. 46PCh. 19 - Prob. 47PCh. 19 - Prob. 48PCh. 19 - Prob. 49PCh. 19 - Prob. 50PCh. 19 - Prob. 51PCh. 19 - Prob. 52PCh. 19 - Prob. 53PCh. 19 - Prob. 54PCh. 19 - Prob. 55PCh. 19 - Prob. 56PCh. 19 - Prob. 57PCh. 19 - Prob. 1RPCh. 19 - Prob. 2RPCh. 19 - Prob. 3RPCh. 19 - Prob. 6RPCh. 19 - Prob. 8RPCh. 19 - Prob. 1CPACh. 19 - Ryan is 39 years old and works as a real estate...Ch. 19 - Prob. 3CPACh. 19 - Prob. 4CPA
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