Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 6, Problem 10P
To determine
Concept Introduction:
Unearned Income: Unearned income is an income that arises from other sources or investments that are not related to employment. The dividend, stock, and interest from a bank account are examples of unearned income.
To explain: The ways of reporting the tax on unearned income on minor children
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In connection with the application of the kiddie tax, comment on the following.
A. The child has only earned income .
B. The child has a modest amount of unearned income.
C. The child is age 20, is not a student, and is not disabled.
D. The child is married
E. Effect of the parental election.
F. The result when the parental election is made and the married parents file separate returns.
In connection with the application of the kiddie tax, comment on the following:
The child has only earned income.
The child has a modest amount of unearned income.
The child is age 20, is not a student, and is not disabled.
The child is married.
Effect of the parental election.
The result is when the parental election is made and the married parents file separate returns.
show answers with explanation
When determining earnings subject to SE tax, the taxpayer may want to use one of the optional
methods whether if they have a small net profit or loss and which of the following conditions
applies
A. They are eligible to receive the Additional Child Tax Credit
B. They can claim a Credit for Dependent or Child Care Expenses
C. Taxpayer wants to receive a Credit for Social Security Benefit Coverage
D. All of the above
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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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
- Refer to the previous problem 8. If Stan's parents elected to report Stan's income on his parents' return, what would the tax on Stan's income be?arrow_forwardHow is the unearned income of children treated for tax purposes? Can parents include the children’s earned (salaries and wages) income on their own returnarrow_forwardWhich tax form should be used to record payments to an owner? Owner’s tax return W-2 1095-C 1099-MISCarrow_forward
- Which of the following statements is false regarding the earned income credit (EIC)? Multiple Choice If certain requirements are met, a taxpayer may receive advance payments of EIC. Maximum amount of the credit depends on the earned income and number of children. A taxpayer without children cannot claim the credit. The credit is refundable.arrow_forwardexplain in detail regarding the following topics 1. Define the tax Filing Statuses 2. Innocent Spouse VS. Injured Spouse 3. Medical and Dental Expenses (Include Limitations)arrow_forward5. What type of tax goes to help pay for medical care of people over 65 years old? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 6. What type of tax takes a percentage of the money you make on a job? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 7. What type of tax goes to help pay for retirement? a. Income tax b. Property tax c. Sales Tax d. Social Security tax e. Medicare tax 8. True or False: Businesses don't have to pay any taxes in the United States. a. TRUE b. FALSE 9. According to the article, where does the United States rank worldwide in highest income taxes? a. 1st b. 7th c. 25th d. 100th e. 150th 10. What is the name of the agency that collects taxes in the United States? a. Secret Service b. Federal Bureau of Investigation c. Internal Revenue Service d. Department of Energy e. Department of the Interiorarrow_forward
- Which of the following tax credits can not be transferred to a spouse? The age credits The disability credit The EI and CPP benefits The pension income credits The claw back of OAS payments will not alter the individual’s net income for tax purposes (True/False)- _________ There is no limit on the amount of the tuition credit that can be transferred to a spouse (True/False)- ________ Adam, who is single supports his 80 years old blind mother who has no income and lives in a nursing home. Which of the following federal tax credit can be claimed for his mother? Disability tax credit only disability tax credit and Canada caregiver tax credit only disability tax credit and eligible tax credit only Canada caregiver credit only. Joe is self-employed. He might be eligible for all of the following Federal tax credits, except: CPP tax credit EI tax Credit Canada employment Tax Credit Canada workers benefit tax credit. Elsa is 73 years old. Her 2021 net income for tax…arrow_forwardWhat would be the marginal and average tax rates for a married couple with taxable income of $89,600? For an unmarried taxpayer with the same income? Use Table 3.7. (Do not round intermediate calculations. Enter the marginal tax rate as a percent rounded to 1 decimal place. Enter the average tax rate as a percent rounded to 1 decimal place.) a. What would be the marginal tax rate for a married couple with income of $89,600? Marginal tax rate for a married couple b. What would be the average tax rate for a married couple with income of $89,600? Average tax rate for a married couple % Marginal tax rate for an unmarried taxpayer c. What would be the marginal tax rate for an unmarried taxpayer with income of $89,600? % Average tax rate for an unmarried taxpayer % d. What would be the average tax rate for an unmarried taxpayer with income of $89,600? %arrow_forwardMa1.arrow_forward
- What is the meaning of “person” when the term is used in the Income Tax Act? _________, __________ or a ________..arrow_forwardWhat are the tax rates for minors' unearned income? Select one: A. Nil for every $1 earned up to $750, $0.66 for every $1 from $751 to $3,333 and $0.47 for every $1 over $3,333 B. $0.66 for every $1 earned up to $750 and $0.47 for every $1 in excess C. All minors' unearned income is taxed at the relevant adult (non-minor) marginal tax rate D. Nil for every $1 earned up to $416, $0.66 for every $1 from $417 to $1,307 and $0.45 for every $1 earned if the income earned is above $1,307arrow_forwardWhich of the following is not a social objective of the tax laws? a) Place more after tax income into the hands of taxpayers for their disposal. b) Fight unemployment problems of certain disadvantaged groups of citizens through the Work Opportunity Tax Credit. C) Relieve the tax burdens of taxpayers who are 65 or over or are blind. d) Subsidize the cost of a home, and thus encourage home ownership. e) Encourage individuals to provide for their future needs by contributing to their retirement savings accounts.arrow_forward
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