Xialu is a single taxpayer who is under age 65 and in good health. For 2020, she has a salary of $25,000 and itemized deductions of $7,000. Xialu allows her mother to live with her during the winter months (3–4 months per year), but her mother provides all of her own support otherwise. Table for the standard deduction Filing Status Standard Deduction Single $12,400   Married, filing jointly 24,800   Married, filing separately 12,400   Head of household 18,650   Qualifying widow(er) 24,800   a.  How much is Xialu's adjusted gross income? $fill in the blank b.  In order to minimize taxable income, Xialu will _______ in the amount of $fill in the blank c.  What is the amount of Xialu's taxable income? $fill in the blank

Q: Determine whether the taxpayer in each of the following situations has real- ized income. Explain…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

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: 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: 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: Karen, 28 years old and a single taxpayer, has a salary of $35,000 and rental income of $33,000 for…

A: Solution  Rental income  refer the income received from rent from the building or house is taxed…

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: Jeremy earned $101,900 in salary and $7,900 in interest income during the year. Jeremy’s employer…

A: In USA as per IRS rules head of household status allows parents or adults…

Q: L. A. and Paula file as married taxpayers. In August of this year, they received a $4,580 refund of…

A: A. In this situation L.A. and paula consider standard deduction only, because standard deduction…

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

A: Estimated Tax: Estimated tax is a prepayment of projected taxes based on the amount of revenue…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: It is assumed that depreciation on computer and f&f is 40% per annum

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: 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: Alicia, age 27, is a single, full-time college student. She earns $13,200 from a part-time job and…

A: income from jobs =$13200 Taxable interest =$1450 Total income =13200+1450=14650 Total income =$14650…

Q: Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income:…

A: Income Tax- Income Tax refers to the charge which is calculated on the salary of a personal or a…

Q: Sam had $69,487 of income from wages and $215 of taxable interest. Sam also made contributions of…

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

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: L. A. and Paula file as married taxpayers. In August of this year, they received a $6,740 refund of…

A: a. Because they did not itemize their deductions . L.A. and Paula received no benefit from the…

Q: Tamara Moore is an unmarried, 37-year-old taxpayer. She will use the head of household filing…

A: Formula: Gross pay = All incomes including gifts - Contributions Deduction of Contributions fro the…

Q: Huy is single, age 40, and operates a sole proprietorship.In 2020, Huy's sole proprietorship…

A: It is the deduction available on the qualified business income subject to the provisions of IRS.…

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: 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: During 2019​ ,Dale  incurs the following deductible​ expenses: $1,400 in state income​ taxes, $3,400…

A: Calculation of Dale's Taxable Income Particulars   Amount AGI   $38,000 Less: Itemized…

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: 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: 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: Jason and Peggy are​ married, file​ jointly, and have one dependent​ (12-year old qualifying​…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: W2 wages shall be deducted from business income to arrrve at Gross business income from Just…

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: Ava and her husband, Leo, file a joint return and are in the 24% Federal income tax bracket. Ava's…

A: Tax Bracket: A tax bracket is the range of income which is subject to various income tax rates.…

Q: Huy is single, age 40, and operates a sole proprietorship. In 2020, Huy's sole proprietorship…

A: Qualified business income (QBI) deduction is a deduction available to eligible sole proprietors…

Q: Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not…

A: Qualified Business Income - It is the net amount which is qualified items of gain, income loss 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: Randy and Rachel are eligible for a $fill in the blank 1 adoption credit in 2020. b.  Assume the…

A: a. Result: Maximum adoption tax credit available is up to $14,300 per adopted child in 2020.

Q: Rahul and Ruby are married taxpayers. They are both under age 65 and in good health. For 2020 they…

A: The adjusted gross income of a person is equal to their total gross income less specific deductions.…

Q: Alicia, age 27, is a single, full-time college student. She earns $13,200 from a part-time job and…

A: Taxable income is money earned that is subject to taxes by federal or state authorities. Wages,…

Q: Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in…

A: The tax credit which is given as the tax relief to the taxpayers in order to bear the children…

Q: Jeremy earned $100,400 in salary and $6,400 in interest income during the year. Jeremy’s employer…

A:

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: 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: Nelta is a single taxpayer who qualifies for the earned income credit. She has two qualifying…

A: Earned income credit: The earned income credit is a refundable tax credit for working couples and…

Q: Ms. Gleason, an unmarried taxpayer, had the following income items: $ 40,000 3,200 Salary Net income…

A: Tax is the amount of expenses that are charged by the government from the organisation and…

Q: Rasheed works for Company A, earning $382,000 in salary during 2021. Assuming he is single and has…

A: The wage limit for social security tax for 2021 = $142800

Q: Taxpayer is the sole owner of the home that she purchased in 2015 and that she and Spouse have lived…

A: The sole owner of the house means that the taxpayer is the only owner of the home. The primary…

Q: Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last…

A: The part of your gross income that is used to determine how much tax you owe in a given tax year is…

Q: Rahul and Ruby are married taxpayers. They are both under age 65 and in good health. For 2021 they…

A: Tax refers to the amount charged by the government from the individual and organizations on the…

Q: In December 2021, Ben and Jeri (married filing jointly) have a long-term capital gain of $55,000 on…

A: Given information, Tax on ordinary taxable income = $8,005 Long term capital gains above $80,800 =…

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.