The taxpayer is married filled joints (age 40), with an AGI of $199,000, and is not an active participant in an employer-sponsored plan, but the taxpayers' spouse is an active participant (2020 tax year). Calculate the taxpayer's maximum deduction for traditional IRA contribution

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

A: Concept used : The deferral limit for 2020 is $19,500.

Q: Juan, who is single, is a self-employed carpenter as well as an e His self-employment net income is…

A: Self Employment Tax The federal government collects taxes from self-employed workers and small…

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: Ava and her husband, Leo, file a joint return and are in the 32% Federal income tax bracket (AGI is…

A: The Child and Dependent Care Tax Credit is a federal tax credit that assists working families with…

Q: In each of the following situations, determine whether the taxpayer(s) has/have a dependent and if…

A: Dependent and Independent tax payer Dependents can include infants or any other family members who…

Q: Shellie, a single individual, received her Bachelor's degree in 2020, and took a job with a salary…

A: Income tax- Income tax refers to the tax that is levied on the earnings/ income of a person or…

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: Bill receives social security benefits of $10,000 and files a married-jont return which includes…

A: Individuals having a total gross income, including Social Security, of at least $25,000, or married…

Q: Ava and her husband, Leo, file a joint return and are in the 32% Federal income tax bracket (AGI is…

A: Child Tax credit: It is a tax benefit granted to American taxpayers for each qualifying dependent…

Q: Sal, single and age 72, is a participant of his employer’s qualified profit-sharing plan. For the…

A: IRA is an Individual retirement account. Individual can make contribution to this account, to have…

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

A: Taxable amount: $50,000

Q: Myers, who is single, has compensation income of $72,000 in 2020. He is an active participant in his…

A: Introduction: IRA: IRA stands for Individual Retirement Account in which money can be saved for the…

Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021.…

A: Answer:-  FICA Tax definition: - FICA stands for the Federal Insurance Contribution Act. It is…

Q: In 2019, Gloria, a single taxpayer, receives a Schedule K-1 from a partnership she is invested in.…

A: QBI deduction:   QBI is the net number of qualified items of income, gain, deduction and loss from…

Q: Martha and Rob , a married couple  under 50 years of age, have adjusted gross income on their 2019…

A: In case of married filing jointly and under 50 years of age, the contribution limit to IRA is $6,000…

Q: akes out a $200,000 home equity loan to put an addition on the main home.  Both loans are secured by…

A: Income interest is a borrowing expenditure that may be deducted from taxable income by filing a…

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: Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2019…

A: In case of married filing jointly and under 50 years of age, contribution limit to IRA is $6,000 in…

Q: Mandy was a participant in her employer's contributory qualified pension plan. Her contributions…

A: Introduction: Taxable income: Income tax is levied on taxable income.

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: On January 1, 2020, Michelle, age 35, started a new job, and her new employer offers a healthcare…

A: Employers are allowing employees to make regular contribution to some of the accounts. These are…

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: Marta is 52 years of age and expects to retire from her current employer at age 65. Marta’s employer…

A: Qualified Retirement plan: This is an agreement between the employer and the employee regarding the…

Q: In 2020, Bianca earned a salary of $189,000 from her employer. Determine the amount of FICA Social…

A: Answer The Social Security  withholding rate is gross pay times 6.2% up to the maximum pay level for…

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: A 42-year-old single taxpayer earning a salary of $138,000 a year can make which of the following…

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

Q: Don Driller, who is 56 years old, is provided with $120,000 of group-term life insurance by his…

A: According to the IRS publication: "IRC section 79 provides an exclusion for the first $50,000 of…

Q: Carri and Dane, ages 34 and 32, respectively, have been married for 11 years, and both are active…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Ava and her husband, Leo, file a joint return and are in the 24% tax bracket in 2019. Ava’s employer…

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

Q: [The following information applies to the questions displayed below.] William is a single writer…

A: 2021 IRA Contribution Limits: $6000 if age is less than 50 $7000 if age is 50 or more than 50

Q: What is the maximum amount that Terry and Jennifer may each deduct for contributions to their…

A: Pension plan: Pension plan can be defined as the plan where both employer and employee contribute…

Q: Jill 39 participated in a Section 401(k) plan which provides for maximum employee contributions of…

A: 401(K) Plan: It is a retirement savings plan. This is a defined contribution retirement account…

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: . Assume he does participate in an employer-sponsored plan, and his AGI before the IRA contribution…

A: If the Taxpayer's age upto 50 years, then maximum contribution limit is $6,000. However, if Tax…

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

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

Q: Married taxpayer Otto and Ruth are both self-employed and file a joint return. Otto earns $352,000…

A: Medicare tax is a type of payroll tax which is deducted by the employer to make contribution towards…

Q: Joanne Plummer is self-employed in 2019. Her Schedule C net income is $36,600 for the year, and…

A: Self-employment income: Income earned by an individual by working for his/her interest with the…

Q: During 2018, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee…

A: 401(K) plan is a retirement fund.  Both employer and employee contribute towards this fund  and it…

Q: Juan, who is single, is a self-employed carpenter as well as an employee of Frame It, Inc. His…

A: Workings: Given values: Net Income is $ 35000

Q: In each of the following situations, determine whether the taxpayer(s) has/have a dependent and if…

A: Dependent: A dependent is a person who is financially reliant on another person, and this might…

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: 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: 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: Marlene, age 52, is not married and has salary income of $210,000 during 2020. She pays for all of…

A: Marlene's regular Taxable Income Particulars Amount ($) Income from Salary 210,000 Income…

Q: Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat…

A: Indicate how she should treat the following items for 2018:

Q: For each employee listed, use the percentage method to calculate federal income tax withholding for…

A: Income earned during a year is subject to the federal tax withholding which is deducted by the…

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.