Exercise 3-18 (Algorithmic) (LO. 2)Compute the 2020 standard deduction for the following taxpayers.If an amount is zero, enter "0".Click here to access the standard deduction table to use.а.Ellie is 15 and claimed as a dependent by her parents. She has $1,325 in dividendsincome and $3,680 in wages from a part-time job.b.Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woodyis 69. Their taxable retirement income is $13,340.С.Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her2$earned income is $270, and her interest income is $605.d.Frazier, age 40, is married but is filing a separate return. His wife itemizes herdeductions.

Ellie is 15 and claimed as a dependent by her parents. She has $1,325 in dividends $ а. income and $3,680 in wages from a part-time job. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody $ is 69. Their taxable retirement income is $13,340. b. C. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $270, and her interest income $605. d. Frazier, age 40, is married but is filing a separate return. His wife itemizes her deductions.

Ellie is 15 and claimed as a dependent by her parents. She has $1,325 in dividends $ а. income and $3,680 in wages from a part-time job. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody $ is 69. Their taxable retirement income is $13,340. b. C. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $270, and her interest income $605. d. Frazier, age 40, is married but is filing a separate return. His wife itemizes her deductions.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions

Section: Chapter Questions

Problem 21CE

See similar textbooks

Similar questions

ESTIMATING TAXABLE INCOME, TAX LIABILITY, AND POTENTIAL REFUND. Hannah Owens is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales assistant for Business Solutions: 3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of 142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed for 2015.
LO.2 Determine the effect on gross income in each of the following cases: a. Eloise received 150,000 in settlement of a sex discrimination case against her former employer. b. Nell received 10,000 for damages to her personal reputation. She also received 40,000 in punitive damages. c. Orange Corporation, an accrual basis taxpayer, received 50,000 from a lawsuit filed against its auditor who overcharged for services rendered in a previous year. d. Beth received 10,000 in compensatory damages and 30,000 in punitive damages in a lawsuit she filed against a tanning parlor for severe burns she received from using its tanning equipment. e. Joanne received compensatory damages of 75,000 and punitive damages of 300,000 from a cosmetic surgeon who botched her nose job.
LO.2 For calendar year 2019, Jean was a self-employed consultant with no employees. She had 80,000 of net profit from consulting and paid 7,000 in medical insurance premiums on her policy covering 2019. How much of these premiums may Jean deduct as a deduction for AGI? How much may she deduct as an itemized deduction (subject to the AGI floor)?
LO.2 What is the taxpayers gross income in each of the following situations? a. Darrin received a salary of 50,000 from his employer, Green Construction. b. In July, Green gave Darrin an all-expense-paid trip to Las Vegas (value of 3,000) for exceeding his sales quota. c. Megan received 10,000 from her employer to help her pay medical expenses not covered by insurance. d. Blake received 15,000 from his deceased wifes employer to help him in his time of greatest need. e. Clint collected 50,000 as the beneficiary of a group term life insurance policy when his wife died. The premiums on the policy were paid by his deceased wifes employer.