what is the maximum amount they can give to the family (including the sons- and daughters-in-law) without using any of their unified transfer tax credit?

Q: Mr. and Mrs. Palio celebrated the birth of their third child on November 18. Compute the effect of…

A: Tax liability refers to the sum of money owed by an entity or an individual to the authorized…

Q: Rasheed works for Company A, earning $401,000 in salary during 2021. Assuming he is single and has…

A: FICA tax rate limits :- Social security taxes = 6.2% upto $142,800 Medicare tax = 1.45% Additional…

Q: Danny is a single taxpayer and has taxable income of $125,000 for 2020. If Danny anticipates a…

A: Marginal tax rate is the system of taxation which is applicable in US. When the income of the person…

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: 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: Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of…

A: Compute the Social security benefits taxable amount.   Lesser of the following amount is the taxable…

Q: In 2021, Jasmine and Thomas, a married couple, had taxable income of $101,000. If they were to file…

A: To calculate the benefit or penalty we have to calculate the tax liability jointly and seprately.…

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: 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: Curly and Rita are married, file a joint return, and have two dependent children, ages 11 and 13.…

A: For the 2020 tax year, the child tax credit is $2,000 per qualifying child. The threshold limit for…

Q: Melissa and Whitney are married taxpayers with taxable income of $106,000 and file a joint tax…

A: Tax Liability: Tax liability is the amount of money you owe to tax authorities, such as your local,…

Q: MT adjustments, Adam and his wife Cindy have AMTI of $1,090,000. If Adam and Cindy file a joint tax…

A: The AMT is adjusted and explained. Because certain tax items are taxed differently for AMT, a…

Q: Your uncle has a taxable income of $85,142 last year. If he files as a head of household, what is…

A: As per 2021 tax rates Tax liability if status is head of household = $ 6220 + (85142-54201)*22% = $…

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: On February 1, 2021, Stephen (who is single) sold his principal residence (home 1) at a $100,000…

A: Here in this context Stephen sell the Home one with a gain of $100000 and exclude entire gain on the…

Q: Joe and Jane Keller are a married couple who file a joint income taxreturn, where the tax rates are…

A: The marginal tax rate seems to be the sum of additional tax that must be paid for each new dollar of…

Q: Moe and Pearl are married, file a joint return, and have two dependent children, ages 11 and 13.…

A: AGI = $ 417,000 No.of Children = 2

Q: Laura is calculating her personal exemption while filling out her 2021 tax form. How much is her…

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

Q: In 2021, a 12 years old, receives non-eligible dividends of $13,850 from a private corporation…

A: The dividends are grossed up by "15%" for non-eligible dividends in the year 2021. To calculate the…

Q: Meghan gives May (not Meghan’s spouse) a gift of $34,000 (plus 4905)  in 2021.  Meghan is married…

A: If Meghan files a joint return with her spouse, then the total exemption allowed is $30,000 ($15,000…

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: Benjamin is a taxpayer who qualifies because he has the following dependents: 17-year-old child…

A: The question is related to taxation. The credit amount is up to $3,600 (previously it was $2000)…

Q: Your uncle has a taxable income of $96,412 last year. If he files as a head of household, what is…

A: Since the Taxable year is not mentioned in the question we are considering the last year 2020 as the…

Q: Elijah and Anastasia are husband and wife who have six married children and eight minor…

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

Q: n 2021, Lisa and Fred, a married couple, had taxable income of $305,200. If they were to file…

A: Taxable income: When one individual earns income from a country then he or she has to pay tax as per…

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: Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an…

A: Marginal Tax rate = Change in Tax / Change in Taxable Income

Q: Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return and…

A: Answer with explanation are as follows.

Q: Sarah is completing her tax return for the year 2021 and calculating her personal exemption. I'm 25…

A: As per income tax Act 1961 As an Assesses file return under section 139  Where the exemption for…

Q: Anne and Stuart are married and will file a joint return. In 2022, they donated $700 in cash to…

A: Standard deduction is the amount which is deducted from the income before calculating the income…

Q: Marlin and Teri are married and will file a joint return. They live in a state that does not impose…

A: Itemized deductions are the one which are deducted from the gross income of the tax payer so that…

Q: Joyce is a widowed taxpayer whose husband Willard passed away on March 31, 2020. Joyce and Willard…

A: Based on the given data, Purchase cost of the home on September 12, 2004 = $215,000 Sale price of…

Q: In 2018, Lisa and Fred, a married couple, had taxable income of $337,500. If they were to file…

A: Compute the tax liability - separate filing   Lisa [$14,089.50 + ($137500-$82500) x 24%]…

Q: Wilson and Joan, both in their 30s, file a joint income tax return for 2020. Wilson's wages are…

A: SOLUTION- PENSION IS A CONTRACT FOR A FIXED SUM TO BE PAID REGULARLY TO A PERSON , TYPICALLY…

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: nnie, age 70 and single, is claimed as a dependent on her daughter's tax return. During 2021, she…

A: Taxable Income = Gross Income - Deductions

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: Christina and Javier, a married couple filing a joint return, received a state income tax refund in…

A: It is the amount of state taxes paid more than taxes to be paid in actual as per the taxable income.…

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: In 2020, Jasmine and Thomas, a married couple, had taxable income of $106,000. If they were to file…

A: If Jasmine and Thomas file joint return as a married couple: Joint Income = $106,000 Income Tax =…

Q: Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have…

A: For the purpose of calculation of tax liability, itemized deductions are those deductions that can…

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: PP operates a convenience store while she offers bookkeeping services to her clients. In 2020, her…

A: Gross sales amount, in this case, means the amount received from the total number of transactions at…

Q: sing property she inherited, Lei makes a 2020 gift of $16,200,000 to her adult daughter, Doris.…

A: Under section 2513, the compliance and tax regulation related to gift tax and estate tax is given.…

Q: Ted Higgins is a single taxpayer with an AGI of $150,000, Taxable income of $90,000 and calculated…

A: Tax is the liability which has paid by the individual and the corporation to the Federal Government…

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…

Q: n 2019, Cheryl, who is single and not a dependent of another taxpayer, has taxable income of…

A: Every Individual who is earning more than the limit prescribed then person has to pay tax amount to…

Q: Olga is married and files a joint tax return with her husband. What amount of AMT exemption may she…

A: The AMT is charged at two rates: 26% and 28%. For the year 2021, the AMT exemption level is $73,600…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.