Jose paid $10,000 for qualified tuition during the tax year
Q: Matthew earned $67,859 during 2020. How much will his employer withhold from him, in total, for FICA…
A: FICA tax: Federal government imposes taxes on the employee's pay to provide benefits to retired, old…
Q: Agnes, a resident taxpayer, has a taxable income of $50,000 for the income tax year ended 30 June…
A: PAYG is pay as you go is amount of tax deducted by employer at source. After filing income tax…
Q: Simon is single and a stockbroker for a large investment bank. During 2020, he has withheld from his…
A: Given information, withheld from his paycheck=$2,250 for state taxes and $400 for city taxes. Simon…
Q: Martin, a single taxpayer, earns $96,000 per year in taxable income and an additional $12,000 per…
A: Marginal tax rate is the tax paid on additional income as the income increases, the tax liability…
Q: In 2021, Sven is single and has $138,000 of regular taxable income. He itemizes his deductions as…
A: The alternative minimum tax (AMT) applies to taxpayers who falls under high income by fixing a limit…
Q: Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is…
A: Self employment tax rate in 2020 = 15.3% Medicare tax rate = 2.9%
Q: Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a part-time…
A: Lucy is 17 years below 19 years of age and hence qualified for children tax rate Wages =9000…
Q: William, a resident, has taxable income for 2020/21 of $60,000. The PAYG amounts withheld by his…
A: Pay as you Go [PAYG] is the amount of tax withheld by the employer from the pay out of the employee…
Q: Taylor, age 16, is claimed as a dependent by her parents. For 2020, she has the following income:…
A: Kiddie tax is applicable on a dependent child if all the following requirements are met for the…
Q: Ben had $88,000 of income from wages and $4,350 of taxable interest. Ben also made contributions of…
A: Taxable income seems to be the part of an individual's personal or a firm's income which is used to…
Q: Jeremy earned $101,200 in salary and $6,600 in interest income during the year. Jeremy’s employer…
A: AGI deduction=0 Adjusted gross income=107800-0 =107800
Q: LaTosha had $103,500 of income from wages and $3,550 of taxable interest. LaTosha also made…
A: Income tax is calculated on the taxable income which is equal to the total income less all the…
Q: Danielle Landerman (33), a single taxpayer, spent $2,800 for tuition and required course fees to…
A: Danielle qualifies for Lifetime Learning Credit tax benefits for education.
Q: During the 2020 tax year, Gwen supports her family as a physical therapist. She reports $90,000 of…
A: Health insurance is a type of insurance that pays for medical costs incurred as a result of an…
Q: Greg is single. During 2020, he received $60,000 of salary from his employer. That was his only…
A: Salary: Its a compensation to be paid to employees for contributing their time and providing…
Q: Addison had $80,000 of income from wages and $1,850 of taxable interest. Addison also made…
A: Head of household can claim dependent allowance up to $2000 per child dependent on him in the year…
Q: Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000…
A: Answer: The final tax due is calculated on the net income of the person. The deductions is allowed…
Q: Rasheed works for Company A, earning $350,000 in salary during 2021. Assuming he is single and has…
A: The Federal Insurance Contributions Act (FICA) is a United States law that requires employers to…
Q: In 2021, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She…
A: Gross income includes all revenue, regardless of source. Unless specifically exempted by the Act,…
Q: Brooke, a single taxpayer, works for Company A for all of 2020, earning a salary of $66,000. Assume…
A: Gross pay: It is the total amount of wages earned by employees without deducting any taxes or…
Q: Jaclyn Biggs, who files as a head of household, never paid AMT before 2021. In 2021, her regular tax…
A: Taxpayer should pay higher tax amount between AMT and regular Tax. Total Income Tax under AMTI…
Q: Assume Edgar (age 45), a single taxpayer, has total itemized deductions of $19,252 for 2019, which…
A: Income tax: It is the amount a person is liable to pay on the earned amount in an accounting…
Q: Assuming Fred itemizes, how much state income tax deduction should he report on his 2019 federal…
A: Payroll: The total payment that a company is required to pay to its employee for the services…
Q: Robert is a single taxpayer who has an AGI of $145,000 in 2020, his taxable income is $122,000. What…
A: Tax liability of an individual depends on the net taxable income for the previous period. Taxable…
Q: 00 in salary and $6,400 in interest income during the year. Jeremy’s employer withheld $11,000 of…
A: In the given question, Jeremy, who is categorized under the head of household and has one qualifying…
Q: In 2020, Marley, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…
A: AGI stands for Adjusted Gross Income. AGI is the difference between gross income & adjustments…
Q: Henrich is a single taxpayer. In 2020, his taxable income is $450,000. What is his income tax and…
A: Income tax liability: It is the amount of tax a taxpayer is liable to pay on the taxable income…
Q: Mario, a single taxpayer with two dependent children, has the following items of income and expense…
A: Part( a )Mario's taxable income or loss for 2020. Adjusted Gross Income :- Gross receipts from…
Q: In 2020, Fred (55, head of household) has taxable income of $79,120. Fred had federal income taxes…
A: Tax is regarded as the mandatory amount which is paid by the taxpayer to the state or local…
Q: Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In…
A: Given information is: Contribution to HSA = $100 per month One time contribution = $2000 Used for…
Q: Baker is single and earned $226,000 of salary as an employee in 2020. How much should his employer…
A: FICA is a U.S. There is a federal payroll tax. It stands for the Federal Insurance Contribution…
Q: Ms. Perry operates a convenience store while she offers bookkeeping services to her clients. In…
A: Tax Due = 8% x Taxable Income
Q: In February 2021 Jin (a single taxpayer) filed her 2020 federal income tax return, claiming a refund…
A: Tax refund: It implies to a return of tax payment by the HMRC to the taxpayer who has paid in excess…
Q: A single person has taxable income of $85,000 per year. She earns $1,800 in interest from a…
A: Income tax is charged on the income which a person earns during the previous year. It includes…
Q: armen owns a cornershop. During the 2020 tax year, Carmen bought trading stock worth $77,000 and…
A: Trading Stock bought $ 77,000 Trading Stock Sold $ 125,000 All Items…
Q: Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What…
A: Taxable income refers to the amount to which tax is imposed. It is arrived at after allowing certain…
Q: MOMO is an employee of BTS Corporation and earned $200,000 for the taxable year 2021. If for the…
A: MOMO's taxable income would be: $200,000 + $450,000 = $650,000 Her income tax due would be:…
Q: Julie filed a valid extension for her 2020 tax return, giving her until October 15, 2021, to file…
A: Income tax is the tax paid by an individual or an entity on the income earned in a particular year…
Q: Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from his salary.…
A: It is given that, Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from…
Q: , Martin had two employers during the year. Both employers withheld Social Security tax from his…
A: When an employee has social security tax which is more or RRCT tier 1 withheld , they can claim the…
Q: Sylvester files as a single taxpayer during 2021. He itemizes deductions for regular tax purposes.…
A: Formula: AMTI = Taxable income + Real estate tax + State income tax
Q: Jaclyn Biggs, who files as a head of household, never paid AMT before 2021. In 2021, her regular tax…
A: Compute the Jacklyn's total income tax for 2021:- Jacklyn's total income tax is $ 111,110…
Q: During the year ended 30 June 2019 Rechelle, a resident taxpayer, received salary and wages income…
A: During year ended 30.06.2019, Rechelle, a resident tax payer salary and wages income = $34750…
Q: Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is…
A: Self-employment tax: It is a tax that includes social security tax and medicare tax for calculating…
Q: Kirsy , a single taxpayer, has taxable income of $40,000 and is in the 12% tax bracket. During 2021,…
A: Correct option is D i.e 12% × 23,000 Explanation:
Q: Diego, age 28, married Dolores, age 27, in 2019. Their salaries for the year amounted to $80,000 and…
A: Tax liability: When the assessee is earned the income of among any of the sources of income then its…
Q: During the tax year, Jose paid $10,000 for eligible tuition. In 2021, how much of this spending is…
A: Deduction U/S 80C for individual and High-income tax Act 1961 Deduction available for payment of…
Q: Ms Rivera with four qualified dependent children had a net taxable compensation income of P 450,000…
A: Tax is a tax that individuals and businesses must pay to the government in order for the government…
Q: Ramon, a single taxpayer with no dependents, has adjusted gross income for 2019 of $98,000 and his…
A: Calculation of Taxable income:
Q: Dmitry had $42,000 of income from wages and $1,550 of taxable interest. Dmitry also made…
A: Taxable income is the income calculated after multiplying the tax rate by the net income and…
Jose paid $10,000 for qualified tuition during the tax year. What amount of this expense qualifies for hte tuition and fees deduction in 2021?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If Inez has taxable income of 158,000, how much income tax results? b. If Inez has taxable income of 35,000, how much income tax results?During the 2019 tax year, Brian, a single taxpayer, received $ 7,400 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he received $ 30,000 in tax-exempt interest income and has no for-AGI deductions, Calculate the amount of the Social Security benefits that Brian must include in his gross income for 2019. SIMPIFIED TAXABLE SOCIAL SECURITY WORKSHEET (FOR MOST PEOPLE) 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1 3. Enter the total of taxable income items on Form 1040 except Social Security income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2,3, and 4 6. Enter all adjustments for AGl except for student loan interest, the domestic production activities deduction, and the tuition and fees deduction. 7. Subtract line 6 from line 5 . If zero or less, stop here, none of the Social Security benefits are taxable. 8. Enter $ 25,0001 $ 32,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 9. Subtract line 8 from line 7 . If zero or less, enter -0 - Note: If line 9 is zero or less, stop here; none of your benefits are faxable. Otherwise, go on to line 10 10. Enter $ 9,0001 $12,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 11. Subtract line 10 from line 9. If zero or less, enter -0 -. 12. Enter the smaller of line 9 or line 10 . 13. Enter one-half of line 12 14. Enter the smaller of line 2 or line 13 . 15. Multiply line 11 by 85 (. 85 ). If line 11 is zero, enter -0 -. 16. Add lines 14 and 15 17. Multiply line 1 by 85(.85) 18. Taxable benefits. Enter the smaller of line 16 or line 17 . 1.____________ 2.____________ 3.____________ 4.____________ 5.____________ 6.____________ 7.____________ 8.____________ 9.____________ 10.____________ 11.____________ 12.____________ 13.____________ 14.____________ 15.____________ 16.____________ 17.____________ 18.____________Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. What is the maximum amount that Karen may deduct for contributions to her IRA for 2019? $__________________________ If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2019? $__________________________
- Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her 21,000 per month in 2020 for a total of 252,000. Freda countered that she would accept 10,000 each month for the 12 months in 2020 and the remaining 132,000 in January 2021. The employer accepted Fredas terms for 2020 and 2021. a. Did Freda actually or constructively receive 252,000 in 2020? b. What could explain Fredas willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the 132,000 in 2020, the employer offered 133,000 to Freda at that time, rather than 132,000 in January 2021. The employer wanted to make the early payment so as to deduct the expense in 2020. Freda rejected the employers offer. Was Freda in constructive receipt of the income in 2020? Explain.Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays 8,400 rent on April 1, 2019, for the 12 months ending March 31, 2020. a. How much is Shannas deduction for rent expense in 2019? b. Assume the same facts, except that the 8,400 is for 24 months rent ending March 31, 2021. How much is Shannas deduction for rent expense in 2019?Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.