Economic Impact Payment and Recovery Rebate Credit (LO 1.7) Luke and Vanessa have been married since 2017 and have filed jointly each year since then. Their 2020 EIP was based on their 2020 tax return that was filed in early February 2021. In May 2021, they celebrated the adoption of a child. If their AGI was never greater than $120,000, what was their EIP and RRC (before applying the EIP) in 2021? а. EIP b. RRC
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- Qualifying Dependents (LO 1.6) What is the total dollar amount of personal and dependency exemptions a married couple with two children (ages 11 and 17, both of which are qualified children) and $80,000 of adjusted gross income would deduct in 2023? $0 What is the total child and other dependent credit that could be claimed (before any advance payments or limitations)? 2,000 X Feedback Check My Work In December 2017, The Tax Cuts and Jobs Act or TCJA was signed into law. This is the most dramatic change to the tax code since 1986 and thus affects the tax rules in important ways.Self-Study Problem 1.7 What is the net effect of the EIP (economic impact payment) and RRC (recovery rebate credit) on each of the following taxpayers. The EIP is $1,400 for single taxpayers and $2,800 for married, filing jointly taxpayers. An additional $1,400 is allowed for each qualifying child. 1. Mirka and Liam are married and file jointly with AGI of $97,000 in 2021. In 2021 they received an EIP of $4,200 based on their filing status and having a dependent child at the end of 2020. 2. Phoebe was a dependent taxpayer in 2020 and had not filed a tax return. In 2021, she failed to request and did not receive an EIP, although she was no longer a dependent and had AGI of $28,000 as a single taxpayer. 3. Mahima received a $1,400 EIP in 2021. Due to the birth of her son in 2021, Mahima was classified as a head of household taxpayer with AGI of $47,000. 4. Jane and Marshall file jointly in 2021 and claim two dependents. They received a $5,600 EIP in 2021. Jane received a large bonus in…Discussion Question 1-21 (LO. 4) Elijah and Anastasia are married and have five married children and nine minor grandchildren. For 2020, what is the maximum amount they can give to their family (including the sons- and daughters-in-law) without using any of their unified transfer tax credit? ___________$
- Part 1 - Scenario 4 Review the following scenario. Use the information provided to answer questions about the taxpayer’s 2020 return.Jasmine Dayne (29) is filing as a single taxpayer. In 2020, she received income from the following sources: $39,000 in wages. Alimony payments totaling $14,328. Her divorce was finalized in October 2019. Unemployment compensation of $6,200. Jasmine also made a timely $2,000 contribution to a traditional IRA for 2020.She had no other income or adjustments, and she will claim the standard deduction.To assist you in answering questions about Jasmine’s tax return, you may refer to Part I of Schedule 1, Additional Income and Adjustments to Income, which is shown below.Part I Additional Income1 Taxable refunds, credits, or offsets of state and local income taxes. ________2a Alimony received. _________2b Date of original divorce or separation agreement (see instructions). _________3 Business income or (loss). Attach Schedule C. _________4 Other gains or…Self-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "0". Details a. The payments are made in 2021 as part of a divorce decree executed in 2018. The divorce decree is modified in 2021 to explicitly apply the provisions of the TCJA. b. The payments are made in 2021 as part of a divorce decree executed in 2016. c. The payments are made in 2021 as part of a divorce decree executed in 2021. Deductible by payor Includable by recipient 00 00Education Tax Credits (LO 7.5) Janie graduates from high school in 2022 and enrolls in college in the fall. Her parents (who file a joint return) pay $4,600 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $172,200, what is the American Opportunity tax credit they can claim for Janie?
- please use 2021 tax table Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2021 Christmas season and get married around the end of the year. In 2021, Raphael expects to earn $45,450 and Martina expects to earn $15,900. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. They are trying to decide whether they should get married on December 31, 2021, or on January 1, 2022. What do you recommend? Use the appropriate Tax Tables. collective tax liability in 2021 if raphael and martina get married in 2021? if raphael and martina get married in 2022? should they get married in 2021 or 2022?Data: In 2020, Elaine paid $2,160 of tuition and $900 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband - AGI $165,500. Question: What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books ? Thx, StephanieQuestion 13 11. During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a part- time position, how much of their allotted $12,000 yearly Social Security payments would they receive? Assume $12,000 is the amount after deducting the early withdraw penalty. Question 14 12. From the question above, now assume the individual is 71 years old. How much of the yearly $12,000 would they receive while still earning $23,000 from their part-time position? Question 15 13. At retirement age in 2020, an individual has an average yearly indexed income of $40,000. How much would their monthly Social Security check be worth using the PIA formula? *Do not use dollar signs*
- Problem 5: Tax Credits Ted and Julia Higgins are married for all of 2022 with an AGI of $175,000 which includes $25,000 of earned income for Ted and $100,000 of earned income for Sophia. Their taxable income is 145,000 and tax liability is $20,000. They have two children, Bryan and Sophia, who meet all of the requirements of a qualifying child for 2022. Bryan is 12 and attends high school full time. The Higgins spend $10,000 during 2022 on child care for Bryan. Sophia is a full-time student in her junior year at UCR. The Higgins spend $6,000 on tuition, books and other course materials for Sophia during 2022. Required: What is the total amount of tax credits that the Higgins’ can report on their tax return?Problem 4: Calculate net tax due Saji and Henry Lozano are married for all of 2022 and have an AGI of $130,000, taxable income of $120,000 and calculated income tax liability of $50,000. Their income tax liability in 2021 was $40,000, and they made the minimum amount of withholding and estimated income tax payments to ensure that they will not be subject to any estimated tax penalties. In addition, they had $5,700 withheld from their wages for their portion of Social Security and Medicare taxes and provided you with the following information: • They maintained a home for Saji's dependent 85 year old father. Henry spent $2,000 on qualified tuition pursuing his master's degree. Required: What is the Lozano's net tax due(refunded) for 2022?Question 38 James and Martha Willard are 67 and 65 years old respectively. The couple received the following income items during 2020: аге Wages from part-time employment Fully taxable pensions Interest from Liberty Bank & Trust Certificates of Deposit Interest from Cedar County (Iowa) Bond Social Security Benefits $10,000 ১50.000 $4,000 $2,000 $45.000 What is the taxable amount of their social security benefits? DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!! IF YOU GETA DECIMAL AMOUNT IN YOUR FINAL ANSWER, ROUND UP THE ANSWER TO THE NEXT WHOLE DOLLAR AMOUNT.