Basic Scenario 8: Zoe Watson Directions Using the tax software, complete the tax return, including Form 1040 and allappropriate forms, schedules, or worksheets. Answer the questions following the scenario. When entering Social Securitynumbers (SSNs) or Employer Identification Numbers (EINS), replace the Xs as directed, or with any four digits of yourchoice. Interview Notes Zoe is single and 47 years old. • Zoe has two children. Yvonne, age 19, has a job and earnedwages of $5,200. Joshua, age 26 is totally and permanently disabled and received Social Security benefits of $4,500.Both children lived with her all year. Zoe paid all the cost of keeping up the home and more than half the support forher children. • Zoe received disability pension benefits, but she has not reached the minimum retirement age of heremployer's plan. • She does not have enough expenses to itemize for the 2023 tax year. Zoe, Yvonne, and Joshua are U.S. citizens and have valid Social Security numbers. They all lived in the United States for the entire year. If she has anybalance due or refund, she would like to use Adelphia Bank and Trust. Zoe provided a voided check. Who is Zoe'squalifying child for purposes of claiming the Earned Income Tax Credit? a. Yvonne b. Joshua c. Both Yvonne andJoshua d. Neither Yvonne nor Joshua.

To qualify for the Earned Income Tax Credit (EITC), a qualifying child must meet all four of these…

Answered: balance due or refund, she would like…

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 53P

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Richard Cook Directions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes • Richard is age 39 and was widowed in 2017. He has a daughter, Isabella, age 5. • Richard provided the entire cost of maintaining the household and over half of the support for Isabella. In order to work, he pays childcare expenses to Busy Bee Daycare. • Richard declined to receive advance child tax credit payments in 2021. • Richard’s earned income in 2019 was $19,000. • Richard and Isabella are U.S. citizens and lived in the United States all year in 2021. • Richard received the third Economic Impact Payment (EIP3) in the amount of $2,800 in 2021. 33. Richard does not qualify to claim a retirement savings contribution…
Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beths birthday is July 4, 1972, and her Social Security number is 123-45-6785. She wants to contribute 3 to the Presidential Election Campaign Fund. The following information is shown on Beths Wage and Tax Statement (Form W2) for 2018. The following information is shown on Beths Wage and Tax Statement (Form W2) for 2018. During the year, Beth received interest of 1,300 from Arizona Federal Savings and Loan and 400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099INT. She received qualified dividends of 800 from Blue Corporation, 750 from Green Corporation, and 650 from Orange Corporation. Each corporation reported Beths dividend payments on a Form 1099DIV. Beth received a 1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of 8,200, which included 2,200 of state income tax withheld by her employer. Fees earned from her part-time tax practice in 2018 totaled 3,800. She paid 600 to have the tax returns processed by a computerized tax return service. On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for 17.60 a share. On September 12, 2018, Beth sold the stock for 14 a share. On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for 30 a share. She sold the stock on December 19, 2018, for 55 a share. Both stock transactions were reported to Beth on Form 1099B; basis was not reported to the IRS. Beth bought a used sport utility vehicle for 6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for 6,500. During the year, Beth records revenues of 16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business. Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15, 2018, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of 1,420 she incurred in attending the convention. The 1,420 included 200 for the cost of meals. During the year, Beth paid 300 for prescription medicines and 2,875 for doctor bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of 1,766 on her home. Interest on her home mortgage (Valley National Bank) was 3,845, and interest to credit card companies was 320. Beth contributed 2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled 350. Beth paid estimated taxes of 1,000. Part 1Tax Computation Compute the net tax payable or refund due for Beth R. Jordan for 2018. If you use tax forms for your solution, you will need Form 1040 (and its Schedules 1, 4, 5, B, C, D, and SE) and Forms 4562 and 8949. Suggested software: ProConnect Tax Online Part 2Tax Planning Beth is anticipating significant changes in her life in 2019, and she has asked you to estimate her taxable income and tax liability for 2019. Beth just received word that she has been qualified to adopt a two-year-old daughter. Beth expects that the adoption will be finalized in 2019 and that she will incur approximately 2,000 of adoption expenses. In addition, she expects to incur approximately 3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments. Beth expects her interest income to increase from 1,700 to 2,050. In your computations, assume that all other 2019 income and expenses will be the same as 2018 amounts.
Mark for follow up Question 6 of 15. Maggie is a neighbor of yours who lives with her parents. She is 20 years old and has a one-year-old child. You know that Maggie was a full-time student until she quit college at the end of September of the tax year. Maggie gives you her tax documents and tells you that her mother said to claim herself and to claim her child for EITC. To meet the EITC due diligence knowledge requirement, you: Cannot ignore the facts about Maggie living with her mother for nine months of the year when she was a full-time student Can disregard information obtained through a personal relationship. Cannot complete Maggie's return under any circumstances. Can complete Maggie's return filing her as a single non-dependent with EITC for her child. Mark for follow up « Back Save/Return Later Summary Next »
Prepare Brenda Peterson is single and lives at 567 East Street, Marshfield, MA 02043. Her SSN is Tax Return Problem 2 412-34-5670. She worked the entire year for Applebee Consulting in Marshfield. Her Form W-2 contained information in the following boxes: Wages (box 1) = S67,155.75 %3D Federal W/H (box 2) = $ 8,366.12 Social security wages (box 3) = $67,155.75 Social security W/H (box 4) = $ 4,163.66 Medicare wages (box 5) = $67,155.75 Medicare W/H (box 6) = $ 973.76 bemco %3D She also received two Forms 1099-INT. One was from First National Bank of Marshfield and showed interest income of $537.39 in box 1. The other Form 1099-INT was from Baystate Savings and Loan and showed interest income of $281.70 in box 1. Brenda had qualifying health care coverage at all times during the tax year. Prepare a Form 1040 for Brenda.
Carla Morrison (SIN: 805 125 127); was born on May 2, 1999. She is single and lives at 10 Tucker Court, Toronto Ontario A4B CXD. Carla approached you and asked your help to prepare her Individual T-1 tax return for 2020. Carla provided you with additional information for the period ending December 31, 2020 as given below: A. Last year (2020) Carla finished high school and started working on sales at a local start-up company (Fresh Flowers Co) owned by a family friend. She excels at sales and was prepared to forgo school to help her family friend. (Please refer to the T4 Slip for details). B. Throughout the year, Carla contributed $10,000 to a registered retirement savings plan (RRSP) at a local bank. Over the years she had accumulated RRSP room and it stood at $25,000. Carla has determined that she has the RRSP deduction limit to claim the full amount on her tax return. To complete this return, the following information slip received for 2020 is provided herewith: See below excerpt…
85. Which of the following tax return preparers must file federal income tax returns electronically? (Search Chapter 8) O a. Bob, who provides tax assistance under the Volunteer Income Tax Assistance program O b. Ellen, who prepares a return of the employer by whom she is employed O c. Peter, a tax return preparer who expects to file 20 individual income tax returns Od. Lynn, who prepares 20 tax returns as a fiduciary
Choosing and preparing an individual tax form. Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the following financial information for that calendar year. A blank Form 1040 and Schedule 1 may be obtained at www.irs.gov. Scholarship used to pay Tuition $ 5,750 Scholarship used to pay room, and board 1,850 Salary 55,000 Interest income 185 Itemized Deductions 3,000 Income taxes withheld 2,600 Prepare Liam’s 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3.
Check my work mode: This shows wh Return to question Arno and Bridgette are married and have combined W-2 income of $72,441. They received a refund of $418 when they filed their taxes. How much income-tax did their employers withhold during the year? Use the tax tables. Multiple Choice О $5,345, О $4,927. $4,509. The answer cannot be determined with the information provided. www ×
Sd Carolyn has an AGI of $38,000 (all from earned income) and two qualifying children and is filing as a head of household. What amount of earned income credit is she entitled to? a. $0 b. $2,401 c. $3,341 d. $3,692 e. $6,164
only typed answer You and your spouse have earned salary and wages of $41,750. In addition, you have corporate bond interest income of $600 and savings account and certificate of deposit interest income of $800. Using only this information, what is your adjusted gross income for tax purposes?
For the following taxpayers, determine if they are required to file a tax return in 2023. Problem 8-80 Part a (Algo) a. Ricko, single taxpayer, with gross income of $15,800.
Dont use any Ai site cource hero bartleby for answering Grace Kelly earns $2,000 per week. She is married and claims two exemptions. What is Grace's income tax? Use the percentage method.

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balance due or refund, she would like to use Adelphia Bank and Trust. Zoe provided a voided check. Who is Zoe's qualifying child for purposes of claiming the Earned Income Tax Credit? a. Yvonne b. Joshua c. Both Yvonne and Joshua d. Neither Yvonne nor Joshua.