2. Jack Cruz is a project consultant. Total project fees earned during the year amounted to P853,000. Jack opted to use the optional standard deduction of 40%. Determine the tax due of Jack Cruz based on the following possible tax status of Jack: a. Jack is single with no dependent. b. Jack is married with one qualified dependent. c. Jack is married with three qualified dependent.

2. Jack Cruz is a project consultant. Total project fees earned during the year amounted to P853,000. Jack opted to use the optional standard deduction of 40%. Determine the tax due of Jack Cruz based on the following possible tax status of Jack: a. Jack is single with no dependent. b. Jack is married with one qualified dependent. c. Jack is married with three qualified dependent.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...

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In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you identify. Ariel has worked for Sander Corporation for 30 years. Sander has a pension plan in which it matches employee contributions by up to 5 percent of the employees salary. Ariel, who is single, retires during the current year when she is 66 years old. Her pension plan contains payments and earnings of 300,000, half of which are attributable to payments made by Ariel and half attributable to payments made by Sander. Under the plan, Ariel is to receive 2,000 per month until she dies.
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How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.