Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 30P
To determine
Introduction: A qualified tuition program allows taxpayers, to buy tuition credits for higher education, or contribute to meet higher education expenses, these programs are sponsored by governments or private institutions. Section 529 allows, these higher education expenses to be tax-free.
The expenses qualified as higher education expenses under Qualified Tuition program.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
In 2019, Jose paid the following amounts for his son to attend Big State University:
Tuition
$9,000
Room and board
6,300
Books
900
A car to use at school
4,950
Student football tickets
285
Spending money
4,960
How much of the above is a qualified higher education expense for purposes of his Qualified Tuition Program?
In 2021, Jose paid the following amounts for his son to attend Big State University:
Tuition
$6,400
Room and board
4,000
Books
772
A car to use at school
Student football tickets
1,932
237
Spending money
4,775
How much of the above is a qualified higher education expense for purposes of his Section 529 plan?
Adrian was awarded an academic scholarship to State University for the 2021–2022 academic year. He received $6,500 in August and $7,200 in December 2021. Adrian had enough personal savings to pay all expenses as they came due. Adrian's expenditures for the relevant period were as follows:
Tuition, August 2021
$3,700
Tuition, January 2022
3,750
Room and board
August–December 2021
2,800
January–May 2022
2,500
Books and educational supplies
August–December 2021
1,000
January–May 2022
1,200
What amount, if any, must Adrian include in his gross income for 2021 and 2022?
If an amount is zero, enter "0".
2022:
$fill in the blank f1e429096fd0f81_2
Chapter 2 Solutions
Income Tax Fundamentals 2020
Ch. 2 - The definition of gross income in the tax law is:...Ch. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which of the following items would be included in...Ch. 2 - Malin is a married taxpayer and has three...Ch. 2 - George works at the Springfield Nuclear Plant as a...Ch. 2 - Prob. 9MCQCh. 2 - Which of the following will result in the...
Ch. 2 - Prob. 11MCQCh. 2 - Prob. 12MCQCh. 2 - A 64 -year-old taxpayer retires this year and...Ch. 2 - Prob. 14MCQCh. 2 - Prob. 15MCQCh. 2 - Harry's wife Lila passes away in January of the...Ch. 2 - Nomi is in the highest individual tax bracket and...Ch. 2 - Prob. 18MCQCh. 2 - Prob. 19MCQCh. 2 - Prob. 20MCQCh. 2 - Kelly receives a $40,000 scholarship to Ivy...Ch. 2 - Hillary gets divorced in 2016 and is required to...Ch. 2 - Prob. 23MCQCh. 2 - Prob. 24MCQCh. 2 - Prob. 25MCQCh. 2 - Prob. 26MCQCh. 2 - Prob. 27MCQCh. 2 - Prob. 28MCQCh. 2 - During 2019, Carl (a single taxpayer) has a salary...Ch. 2 - Prob. 30MCQCh. 2 - Alicia loses her job part way through 2019. Her...Ch. 2 - Prob. 32MCQCh. 2 - Prob. 33MCQCh. 2 - Dana and Larry are married and live in Texas. Dana...Ch. 2 - Which of the following conditions need not be...Ch. 2 - Indicate whether each of the items listed below...Ch. 2 - Jane is a roofing contractor. Jane's friend needed...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Linda and Richard are married and file a joint...Ch. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Greg died on July 1,2019 , and left Lea, his wife,...Ch. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - How are qualified dividends taxed in 2019? Please...Ch. 2 - Describe the methods that an individual taxpayer...Ch. 2 - Prob. 20PCh. 2 - Vandell is a taxpayer in the 25 percent tax...Ch. 2 - Karen is a wealthy retired investment advisor who...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Answer the following questions: Under a 2017...Ch. 2 - Arlen is required by his 2019 divorce agreement to...Ch. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Lydia, a married individual, was unemployed for a...Ch. 2 - During the 2019 tax year, Brian, a single...Ch. 2 - Prob. 34P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Joan, a single mother, has AGI of $61,500 in 2019. In September 2019 , she pays $5,000 in qualified tuition for her dependent son who just started at Big University. What is Joan's American Opportunity credit for 2019? $0 $1,250 $2,125 $2,500 Some other amountarrow_forwardVirginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000arrow_forwardDuring 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amountarrow_forward
- Jarrod receives a scholarship of 18,500 from Riggers University to be used to pursue a bachelors degree. He spends 12,000 on tuition, 1,500 on books and supplies, 4,000 for room and board, and 1,000 for personal expenses. How much may Jarrod exclude from his gross income?arrow_forwardClassify each of the following expenditures paid in 2019 as a deduction for AGI, a deduction from AGI, or not deductible: a. Roberto gives cash to his father as a birthday gift. b. Sandra gives cash to her church. c. Albert pays Dr. Dafashy for medical services rendered. d. Mia pays alimony to Bill. e. Rex, who is self-employed, contributes to his pension plan. f. Bonita pays expenses associated with her rental property. g. Lu, who operates a sole proprietorship, takes a client to dinner to discuss new business.arrow_forwardIn 2023, Elaine paid $2,960 of tuition and $1,040 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Problem 8-72 Part a (Algo) a. Elaine's AGI is $103,250.arrow_forward
- n 2021 Betty loaned her son, Juan, $10,000 to help him buy a car. In 2023, before he repaid the $10,000, Betty to Juan that she was "tearing up" the $10,000 note as a graduation present. How should Juan treat the amount forgi O A. taxable income in year of forgiveness B. excludible gift in year of forgiveness OC. taxable income in year of loan O D. excludible gift in year of loanarrow_forwardM01arrow_forwardAdrian was awarded an academic scholarship to State University for the 2023–2024 academic year. He received $6,500 in August and $7,200 in December 2023. Adrian had enough personal savings to pay all expenses as they came due. Adrian's expenditures for the relevant period were as follows: Tuition, August 2023 $3,700 Tuition, January 2024 3,750 Room and board August–December 2023 2,800 January–May 2024 2,500 Books and educational supplies August–December 2023 1,000 January–May 2024 1,200 Question Content Area Regarding Adrian's scholarship, indicate whether the following statements are "True" or "False". a. When Adrian received the money in 2023, his total expenses for the academic year were not known. Therefore, he is allowed to defer reporting the income until 2024, when the uncertainty is resolved. b. The amount Adrian spent on tuition, books, and educational supplies in 2024 will not be excludable, since the scholarship was…arrow_forward
- In 2021, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and other qualified higher education expenses. What amount is taxable to Amy? a.$0 b.$8,000 c.$3,000 d.$11,000arrow_forwardJanie graduates from high school in 2019 and enrolls in college in the fall. Her parents (who file a joint return) pay $8,725 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $170,000, what is the American Opportunity tax credit they can claim for Janie?$fill in the blank f1e43ef63038fac_1 b. Assuming Janie's parents have AGI of $68,000, what is the American Opportunity tax credit they can claim for Janie?$fill in the blank da335a09e043f8f_1arrow_forward1arrow_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