Ms. Nelson is a single mom with three children who live at home. She earned less than $40,000 in 2018. What is the maximum amount of earned income tax credit that she may qualify for?

Q: Mazik, age 17, is a dependent of his parents. Mazik earned wages of $12,500 and had no investment…

A: Income tax liability on the income of an individual depends on his or her tax filling status. The…

Q: Mr. Jacob Marley is single with no children and takes the standard deduction and one exemption.  If…

A: Annual Income - $81400 Single Standard Tax Deduction - $6300 Personal Exemption Amount - $4050

Q: Ted earned $150,000 during the current year. He paid Alice, his former wife, $75,000 in alimony. The…

A: Alimony:Alimony is a fixed amount of money wherein, the court orders a person to make payment for…

Q: Jeremy, age 38, has $25,000 in a traditional IRA account and is considering taking the money out to…

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Rasheed works for Company A, earning $350,000 in salary during 2020. Assuming he is single and has…

A: Federal Insurance Contributions Act tax is a united states federal payroll contribution directed…

Q: eorgina has four employees who earned $75,000, $27,000, $2,100, and $6,200 during 2020,…

A: Explanation: FUTA Tax rate = 6% less-Credit of SUTA Tax Rate FUTA Tax rate = 6%-5.4% FUTA Tax rate =…

Q: Boomer owns a 4-bedroom home located two miles from the Raymond James Stadium in Tampa. On February…

A: Topic 414 of the IRS code deals with Rental income and expenses. A taxpayer has to report all rental…

Q: Jorge has a tax liability of $2,100 in the 2021 tax year. During that year, Jorge has a tax credit…

A: The tax credit is an amount by which the amount of tax liability is decreased. It is different from…

Q: Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year…

A: The Taxpayers are considered as unmarried sometimes even when they are not separated legally, then…

Q: Skylar is single and earns $410,000 in salary during 2018. What is the amount of 0.9 percent…

A: Employers are required to withhold additional Medicare tax, above the 1.45% Medicare tax rate, at a…

Q: Rachel is single and has wages of $162,950 and dividend income of $97,770. She has no investment…

A: Formula: Gross Income = Wages income + Dividend income.

Q: A) Samantha, age 16, is claimed as a dependent by her mother. During 2020, she had interest income…

A: As per IRS rule 2020 if a dependent child has unearned income more than $…

Q: Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020. The Brewsters…

A: Alternative minimum tax (AMT) refers to the minimum amount of tax that an individual supposed after…

Q: Sharon runs a lawn mowing business (which is GST registered) and she decides to employ her son Keith…

A: Tax is the mandatory amount that is paid by the taxpayer to the state or local government from their…

Q: Lorna is a single taxpayer. Which of the following people qualify as her dependents? (all are U.S.…

A: There are 2 types of dependency categories:- 1. Qualified child 2. Qualified relative

Q: Michelle is an active participant in the rental condominium property she owns. During the year, the…

A: Total Income of Michelle = $ 124,000 + $ 10,900 + $ 3,900 = $ 138,800

Q: Samuel, married to John, with two children as dependents, has 2020 wages of $60,000, paid alimony of…

A: Income tax is the tax levied by the state and central government on the income earned by the firm or…

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: Sally, age 44, has 3 dependent children between age 6 and 17. The children live with her and qualify…

A: As Sally can file return as Head of Household, she can avail standard deduction.  For persons filing…

Q: Corina is self-employed. In 2020, her net profit from self-employment was $200,000, and she has no…

A: Self employment means the person who can conduct his own business or services which are treated as…

Q: Natasha is a 21 year old,unmarried student who lives alone. Last year her taxable income was…

A: Gross income is the income which a taxpayer has earned during the year means all money which the…

Q: Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What…

A: We have the following information: Donna has a salary of $104,500 Interest Income: $20,000

Q: Ellie is 15 and claimed as a dependent by her parents. She has $1,325 in dividends $ а. income and…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: As a senior engineer for a large consulting firm, Ray earned $113,000 last year. Ray is married with…

A: Ray, a senior engineer of a large consulting firm earned last year = $113000 Ray is married with two…

Q: Laura is filling her 2021 tax return and is calculating her pesonal exemtion.  Single and age 25…

A: Personal exemption of IRS (Internal Revenue Service) refers to the exemptions which can be claimed…

Q: Mr. Esposito, a petroleum engineer, earns an $84,500 annual salary, while Mrs. Esposito, a…

A: 1. Calculation of after tax income if tax rate is 20%   CALCULATION PARTICULAR AMOUNT       A…

Q: his parents. Malik earned wages of $2,500 and he had investment in

A: A tax is a compulsory contribution or financial charge levied by the government on the income earned…

Q: Mary Beth is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building…

A: In the provided scenario, the CPA is fully involved in the practice and does not have any active…

Q: Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax-exempt income. She did…

A: As per IRS it is mandatory to file 1040 form if the income earned in year 2018 is $12,000 or more…

Q: Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During…

A: Tax credits: Tax credit reduces the tax liability of the tax payer. Through tax credit an individual…

Q: Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal…

A: Federal tax levy: The amount of taxes levied on an employee's take-home pay, based on the levy rate…

Q: Rachel is single and has wages of $150,000 and dividend income of $90,000. She has no investment…

A: Net investment income tax is part of income tax which is charged on the investment income like,…

Q: Libby is a single mom with two kids.How many exemptions can she claim on her federal income tax…

A: Exemption of dependent persons: A single parent is allowed to claim applicable deductions and…

Q: Meredith owns her own business. In 2020, she had business revenue of $268,450 and business…

A: Given that: In 2020, she had business revenue of $268,450 and business deductions of $75,900. She…

Q: In 2015 Chara incurred a loan to pay for qualified higher education expenses for her 20-year-old…

A: Education loan is taken to meet the academic expenses of higher education and the related expenses…

Q: Ed and Wendy are a married couple. They have a five-year-old son. They each earns $60,000 per year,…

A: A penalty usually occurs in low or high earning households. Couple who earns somewhere in between…

Q: Melissa sold some of her Bitcoin in 2021 for a $200,000 long-term capital gain, bringing her total…

A: When a capital asset is sold, the phrase capital gain refers to the rise in its value. Simply put, a…

Q: Amy is single with a salary of $50,000. She has been offered a new position that will raise her…

A: Existing Salary of Amy = $50,000New Salary of Amy = $53,000Raise in Salary = $53,000 - $50,000 =…

Q: Richard is age 39 and was widowed in 2017. He has a daughter, Isabella, age 5. • Richard provided…

A:

Q: Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what…

A: Mabel is 45 and earned $30,000 in 2018.  If she contributed $6,000 to her traditional IRA, what…

Q: Janie graduates from high school in 2020 and enrolls in college in the fall. Her parents (who file a…

A: American Opportunity Tax Credit (AOTC): $2500 Credit per person if paying $4000 of education…

Q: Marik, age 17, is a dependent of his parents. Marik earned wages of $600 and had interest income of…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Elsie, single, had an AGI of $134,712 in 2020. All of her income was from wages. Elsie owns 100% of…

A: The rental real estate loss allowance is a United States federal tax deduction available to…

Q: Mr. Esposito, a petroleum engineer, earns an $53,000 annual salary, while Mrs. Esposito, a…

A: State and federal income tax are the tax levied on the income earned by individual and corporate.…

Q: Boomer owns a 4-bedroom home located two miles from the Raymond James Stadium in Tampa. On February…

A: Boomer owns a 4 bedroom home located 2 miles from the Raymond James Stadium in Tampa. On Feb 4,…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.