29. B. $100
If AGI is between $30,750-$47,250 for head of household for year 2018, 10% credit of the contribution to 401(K) can be taken.
30. D. All of these qualify
31. D. $13,570
As the adoption is a foreign adoption and process become final in 2017, the adoption credit can be claimed in year 2017 and maximum credit is up to $13,570 for year 2017
32 | Amount of adoption credit they can claim in the current year | ||
B | $11,378 | ||
Modified AGI | $210,000 | ||
Phaseout beginning limit | $203,540 | ||
Excess MAGI from phaseout limit | $6,460 | (210000-203540) | |
% of phaseout range (6460/40000) | 16.15% | (243540-203540) | |
Maximum credit for 2017 | $13,570 | ||
Phaseout credit (13570 x 16.15%) | $2,191.56 | ||
Credit can be claimed | $11,378.45 | ||
33 | Amount of adoption credit she can take | ||
A | $0 | ||
As the modified AGI is above the phaseout limit ($243540), credit can be claimed is $0 |
29) Debbie files as head of household and has AGI of $36,500. During the year, she...
Abel and Loni adopted a boy (a U.S. citizen), during the current tax year and incurred a total of $14,675 in qualified adoption expenses. Abel and Loni have modified AGI of $225,000. What is the amount of adoption credit they can take?
Stacey files as head of household with two dependents. She has AGI of $123,000 for 2020. She incurred the following expenses and losses during the year: Medical expenses before the 7.5%-of-AGI limitation $15,575 State and local income taxes 7,200 State sales tax 1,400 Real estate taxes 2,800 Home mortgage interest 5,900 Credit card interest 1,100 Charitable contribution 2,400 Casualty loss before 10% limitation (after $100 floor; not in a Federally declared disaster area) 8,300 Unreimbursed employee expenses 5,500 Calculate Stacey's...
LO 9-7 39. After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old girl from Korea. The adoption process, which became final in January 2017, incurred the following qualified adoption expenses. For how much and in which year can Jake and Nikki take the adoption credit? (Assume no limitation of the credit due to AGI.) Year 2016 $6,000 Year 2017 1,000 a. $6,000 in 2016. b. $1,000 in 2017. c. $7,000...
LO 9-7 40. Abel and Loni adopted a boy (a U.S. citizen) during the current tax year and incurred a total of $14,675 in qualified adoption expenses. Abel and Loni have modified AGI of $225,000. What is the amount of adoption credit they can take? a. $6,290. b. $7,280 c. $13,570. d. $14,675
After two and one-half years of working with the orphanage and the government, Jake and Nikki adopted a two-year-old girl from Korea. The adoption process, which became final in January 2018, incurred the following qualified adoption expenses. How much and in which year can Jake and Nikki take the adoption credit? (Assume no limitation of the credit due to AGI.) $6,825 $1,550 Year 2017 Year 2018 Multiple Choice $6,825 in 2017 $1,550 in 2018 $8.375 in 2017 $8,375 in 2018
Problem 10-39 (a) (LO. 2, 3, 4, 5, 6, 7) Stacey files as head of household with two dependents. She has AGI of $123,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses before the 10%-of-AGI limitation State and local income taxes $15,575 7,200 1,400 State sales tax Real estate taxes Home mortgage interest 2,800 5,900 1,100 Credit card interest 2,400 Charitable contribution Casualty loss before 10% limitation (after $100 floor; not in a Federally...
HOMEWORK 1: Answer the questions for each of the following situations. Explain cach answer. 1. In 2018 Hugh and Helen adopted an eligible child. This child is a U.S. citizen. In 2017, they paid qualified adoption expenses of $2,000 (not claimed in 2017). In 2018, they paid qualified adoption expenses of $3,500 and their modified AGI was $75,000. The adoption was final in 2018. a. How much is their adoption credit in 2017? b. How much is their adoption credit...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2017. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband. Reba also rents out a small apartment building. This year Reba received $30,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...