Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 3, Problem 20CE
Sam and Abby are dependents of their parents, and each has income of $2,100 for the year. Sam’s standard deduction for the year is $1,100, and Abby’s is $2,450. Because their income is the same, what causes the difference in the amount of the standard deduction?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Diego, age 88, married Dolores, age 60, in 2020. Their salaries for the year amounted to $47,230 and they had Social Security Taxable benefits of $ 12,000 and interest income of $3,500. Diego and Dolores’ deductions for adjusted gross income amounted to $2,000, their itemized deductions were $23,900 and they have no dependents.
What is the amount of their adjusted gross income?
What is the amount of their itemized deductions or standard deduction?
What is the amount of their taxable income?
What is their tax liability for 2020?
Paul and Olivia file a joint tax return and reported modified AGI of $142,000. They have two qualifying children, ages seven and nine, for the purpose of the child tax credit. What is the amount of their child tax credit? What is the amount of the credit if they're modified AGI is $167,000? What is the amount of their credit if their modified AGI is $432,000?
Bill and karen are divorced and the parents of one child who is in bill's custody. in order to
work, bill pays karen to care for the child. assuming that karen did not reside with bill, can boll
claim a deduction for the child care expenses he incurred?
Chapter 3 Solutions
Individual Income Taxes
Ch. 3 - Prob. 1DQCh. 3 - Which of the following items are inclusions in...Ch. 3 - Which of the following items are exclusions from...Ch. 3 - Prob. 4DQCh. 3 - In choosing between taking the standard deduction...Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Caden and Lily are divorced on March 3, 2018. For...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - During the year, Brandi had the following...Ch. 3 - Sam and Abby are dependents of their parents, and...Ch. 3 - Compute the 2019 standard deduction for the...Ch. 3 - Paul and Sonja, who are married, had itemized...Ch. 3 - Compute the 2019 tax liability and the marginal...Ch. 3 - In 2019, Simon, age 12, has interest income of...Ch. 3 - Prob. 25CECh. 3 - During the year, Tamara had capital transactions...Ch. 3 - Compute the taxable income for 2019 in each of the...Ch. 3 - Compute the taxable income for 2019 for Emily on...Ch. 3 - Compute the taxable income for 2019 for Aiden on...Ch. 3 - Prob. 30PCh. 3 - Analyze each of the characteristics in considering...Ch. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Taylor, age 18, is claimed as a dependent by her...Ch. 3 - LO.4, 9 Walter and Nancy provide 60% of the...Ch. 3 - Prob. 39PCh. 3 - LO.1, 2, 3, 4, 5, 6 Morgan (age 45) is single and...Ch. 3 - Prob. 41PCh. 3 - LO.5, 6, 9 Roy and Brandi are engaged and plan to...Ch. 3 - In each of the following independent situations,...Ch. 3 - Prob. 44PCh. 3 - Nadia died in 2018 and is survived by her husband,...Ch. 3 - Paige, age 17, is a dependent of her parents....Ch. 3 - Prob. 47PCh. 3 - LO.8 During 2019, Inez (a single taxpayer) had the...Ch. 3 - During 2019, Inez (a single taxpayer) had the...Ch. 3 - Prob. 50PCh. 3 - Lance H. and Wanda B. Dean are married and live at...Ch. 3 - Prob. 52CPCh. 3 - Kathy and Brett Ouray married in 2001. They began...Ch. 3 - Prob. 2RPCh. 3 - Prob. 5RPCh. 3 - Prob. 1CPACh. 3 - Jane is 20 years old and is a sophomore at Lake...Ch. 3 - Prob. 3CPACh. 3 - Jeff and Rhonda are married and have two children,...Ch. 3 - Prob. 5CPACh. 3 - Bill and Anne Chambers are married and file a...Ch. 3 - Prob. 7CPACh. 3 - Heather is single and has one son, Rhett, who is...Ch. 3 - Prob. 10CPACh. 3 - Prob. 11CPA
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
- Arthur and Cora are married and have 2 dependent children. They have a gross income of 95,000. Their allowable deductions for adjusted gross income total 4,000, and they have total allowable itemized deductions of 26,250. a. What is Arthur and Coras taxable income? b. What is Arthur and Coras income tax? c. If Arthur has 3,900 and Cora has 3,600 withheld from their paychecks, are they entitled to a refund, or do they owe additional taxes?arrow_forwardChelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019, she sells the land for 38,000. Chelseas taxable income without considering the land sale is 100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?arrow_forwardLeroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.arrow_forward
- Marvin Miller, who is claimed as a dependent by his parents, received income of $3,100 from a trust fund and $500 from wages. Marvin had $1,150 in itemized deductions. What is Marvin's taxable income?arrow_forwardTimothy (40) and Tina (42) are California residents. Todd (age 10) and Ted (age 7) are their two dependent children (age 17). Tim and Tina also help Tim's brother, Bob. For tax reasons, Bob is Tim and Tina's dependant (qualifying relative). What is Tim and Tina's child tax credit (including additional dependent tax credit) for 2020? Assume Tim and Tina's AGI in 2020 is less than the phaseout level for the child tax credit. I gave two different answers of $4000 and $4500, but both were erroneous.arrow_forwardBrian and Kim have a 12-year-old child, Stan. For 2018, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan’s parents elected to report Stan’s income on his parents’ return, what would the tax on Stan’s income be?$arrow_forward
- Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are employed outside the home and, during 2021, earn salaries as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses? $???arrow_forwardMax and Sarah are the parents of twin three-year old boys. Max and Sarah work full- time and file taxes jointly. Both children attend the Teddy Bear Day Care Center. Their total day care expenses for 2022 were $10,200. What is the maximum amount of qualifying expense Max and Sarah can claim on the Child and Dependent Care Credit?arrow_forwardKaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($16,490 for the year). What is the amount of Kaelyn's child and dependent care credit in 2022 if her AGI for the year was $131,900?arrow_forward
- Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income?arrow_forwardJeremiah and Jonnie Chalk are married and have three dependent children, ages 3, 6, and 9. Assume the taxable year is 2022. Required: Compute their child credit if AGI on their joint return is $99,300. Compute their child credit if AGI on their joint return is $473,700. Compute their child credit if AGI on their joint return is $189,000 and assume that they also have one non-child dependent who meets the requirements for the child credit.arrow_forwardDelilah and George live in Florida and pay real estate taxes on the following properties: Their personal home - $8,600; an empty lot by the lake that they use to camp on for vacations -$2,610; farmland they rent to a local farmer - $1,200; a house that they rent out - $2,950. What is the amount of real estate taxes they can claim as an itemized deduction on Schedule A? Select one: a. $15,360 b. $11,210 c. $10,000 d. $8,600arrow_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
How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License