Rahul is 61 years old and has retired. Since 1 August 2016, he has been receiving a lifetime pension from his taxed defined benefit scheme. In the 2020/21 financial year, he received a pension of $140,000. How is this amount taxed? Would your answer be different if the pension was from an untaxed defined benefit scheme?

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: Julie, being self-employed, is required to make estimated payments of her tax liability for the…

A: In case estimated tax of an individual is $1,000 or more than quarterly payment of tax should be…

Q: Denise is divorced and files a single tax return claiming her two children, ages 7 and 9, as…

A: Given, AGI = $ 81,500 Dependent children = 2 Age = 7& 9 Tax return TYPE = Single

Q: In 2020, Paul, who is single, has a comfortable salary from his job as well as income from his…

A: The amount which a taxpayer has to pay in excess of regular tax amount due towards IRS because of…

Q: In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of…

A: Given : Mary's  age 70 and head of household (unmarried) Income =  $37,000 Exclusions =  $500…

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: Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for…

A: AGI (Adjusted gross income) refers to the gross income remained after deducting the annual gross…

Q: In 2020, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real…

A: By taking ordinary income and incorporating disallowed items and credits including state and local…

Q: Christine and Doug are married. In 2019, Christine earns a salary of $250,000 and Doug earns a…

A: Medicare tax is one of a part of payroll taxes in which a fixed medicare tax rate (1.45%) is…

Q: Diego, age 88, married Dolores, age 60, in 2020. Their salaries for the year amounted to $47,230 and…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Dan is single and over 65 years old.  She received the following in 2020:   Interest from…

A: Taxable amount: $50,000

Q: Joanna, age 44, defers $24,000 in a qualified Solo § 401(k) plan in 2020.   What amount must be…

A: 401(k) plan: It is a plan designed to fund the retirement benefits of the employees. Under this…

Q: Harvey is a self-employed accountant with earned income from the business of $120,000 (after the…

A: Retirement Plan: Retirement plan is the retirement income goals of an individual. It includes…

Q: Crosby is self-employed. He has self-employment income of $100,000, and expenses of $80,000. Crosby…

A: It is the tax payable by the taxpayer, who is self-employed. As per the provisions of IRS, the…

Q: Sean, who is single, received social security benefits of $8,480, dividend income of $12.610, and…

A: In the given scenario, the combined gross income for Sean is :  = Social Security benefit + Dividend…

Q: Brooke, a single taxpayer, works for Company A for all of 2021, earning a salary of $64,000. a.…

A: The question is related to Federal Insurance Contribution Act shared equally by employer amd…

Q: Clark, a widower, maintains a household for himself and his two dependent preschool children. For…

A: The Child and Dependent Care Credit can be worth from 20% to 35% of some or all of the dependent…

Q: Shelley is a self-employed CPA.  In 2020, she had gross revenue of $255,000 and expenses of $40,000…

A: Self employed individuals are required to pay both the employee and employer portion of social…

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: During 2019, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee…

A: Salary for the year : $49,600 Maximum contribution : 10% Maximum tax deferred contribution : (…

Q: Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a…

A: Given Information: As per the given case Phil and Linda are younger than age 50 so in that case they…

Q: Kathy is 48 years of age and self-employed. During 2019, she reported $100,000 of revenues and…

A: Solution: Maximum amount she can contribute to an individual 401(k) for 2019 = Employee contribution…

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

A: FICA tax: FICA stands for federal insurance contribution act. This is the tax paid by both employer…

Q: For 2018, Randy, an unmarried taxpayer, has wages of $45,000. He has a significant amount of income…

A: Taxable income is the income which would be considered for the purposes of income tax. This taxable…

Q: In 2020, Juan entered into a contract to write a book. The publisher advanced Juan $50,000, which…

A: Marginal tax Rate: It is the  additional tax payable  for every additional dollar earned as income.…

Q: In 2018, Max is 85 years of age and single. He received Social Security payments totaling $14,000…

A: For 2018 attached are the tax brackets for those filing as singles. IRA is taxable till $6500 for…

Q: Lacy is a single taxpayer. In 2020, her taxable income is $43,800. What is her tax liability in each…

A: A qualified dividend is the earnings on which the capital gain tax is applied. These taxes are 0%,…

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: Alan is 63 years old. He received a T4A with $5,000 in Box 16. His only other income last year was…

A: Income tax is the tax which is charged by the tax authority on the net income of the firms, earned…

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: 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: I just need the answer to the question that is underlined, please!  Samuel, age 32, loses his job…

A: Federal income tax is a tax on a range of certain kinds of income. Taxes are calculated and paid by…

Q: Henrich is a single taxpayer. In 2020, his taxable income is $451,000. What is his income tax and…

A: Hello, I am only answering first three sub parts of the question as per the policy and if you want…

Q: Amber's employer, Lavender, Inc., has a 5 401(k) plan that permits salary deferral elections by its…

A: An elective-deferral contribution is a portion of an employee's salary that's withheld and…

Q: how is this withdrawal taxed?   A. $9217 of the withdrawal is considered to be a tax-free return of…

A: The question is multiple choice question.The is related to withdrawal of annuties.  Required How is…

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: 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: Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a…

A: The maximum contribution limit to Traditional IRA is $ 6000 per person or $ 12000 if MFJ. The…

Q: 58, reports taxable income of $510,000 in 2021. His AMT base is $625,000, and his regular tax…

A: AMT Adjustment Explanation Because some tax items are treated differently for AMT purposes, a…

Q: Wayne, age 53, and Janet, age 51, are married and file a joint return. Wayne is covered by an…

A: Answer :-The amount refer to the deductible contribution that should be made for Janet to her…

Q: 3. For the 2020 tax year, Nancy, a single taxpayer, receives $12,000 in Social Security benefits.…

A: For the 2020 Tax Year percentage of Social Security Benefit is Taxable if  Income is Less than 25000…

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: Sheila and Joe Wells are married with no dependent children. During 2021, they have gross income of…

A: This question deals with the calculation of tax refund for year 2021. As per US tax code, First we…

Q: What is the maximum deductible contribution into a Traditional IRA in 2021?

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: In 2020, Courtney, 16 and a dependent of her mother, had earned income of $4,000 and interest income…

A: Taxable income refers to the income which is subject to tax as per the government's regulations. All…

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.