Hardaway earned $115,500 of compensation this year. He also paid (or had paid for him) $3,050...
Hardaway earned $115,500 of compensation this year. He also paid (or had paid for him) $3,050 of health insurance (not through an exchange). Ignoring the effects of Social Security and self-employment taxes, what is Hardaway’s AGI in each of the following situations?
a. Hardaway is an employee, and his employer paid Hardaway’s $3,050 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $112,450 of taxable compensation and $3,050 of nontaxable compensation.
b.Hardaway is a self-employed taxpayer, and he paid $3,050 of health insurance himself. He is not eligible to participate in an employer-sponsored plan.
Homework Answers
Ans:
A).AGI of hardaway= $112,450
Total Earnings of Mr. Hardaway= $115,500
Company Paid $112,450 as taxable income and $3,050 of non taxable compensation.
thus, $112,450 shall be considered as AGI as $115,500 is taxable Compensation received from company.
B). Total earnings of Mr. Hardaway= $115,500.
H is a self employed taxpayer and he paid $3,050 of health insurance therefore,the amount he paid for insurance is qualified for deduction.
AGI= Taxable income- qualified deduction
= 115,500-3,050
=112,450.
Add Answer to:
Hardaway earned $115,500 of compensation this year. He also paid
(or had paid for him) $3,050...
[The following information applies to the questions displayed below.] Smithers is a self-employed individual who earns...
[The following information applies to the questions displayed below.] Smithers is a self-employed individual who earns $35,000 per year in self-employment income. Smithers pays $2,250 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation. c. Smithers is self-employed, and he is also married. Smithers's spouse, Samantha, is employed full-time by SF Power Corporation and...
Required information [The following information applies to the questions displayed below.) Smithers is a self-employed individual...
Required information [The following information applies to the questions displayed below.) Smithers is a self-employed individual who earns $44,000 per year in self-employment income. Smithers pays $2,700 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation. a. Smithers is single, and the self-employment income is his only source of income. Deductible as a for...
Jeremy and Alyssa Johnson have been married for five years and do not have any children....
Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year. Alyssa worked for Office Depot as an employee. In March. Alyssa accepted a new job with Super Toys Ine. (ST), where she worked for the remainder of the year. This year, the Johnsons received...
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a...
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C reports net profits of $5,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2018. Serena also pays long-term care insurance premiums of $600 in 2018. Calculate Serena’s self-employed health care deduction. $____________ Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has...
Problem 10-28 (Algorithmic) (LO. 2) In the current year, Roger pays a $2,500 premium for high-deductible...
Problem 10-28 (Algorithmic) (LO. 2) In the current year, Roger pays a $2,500 premium for high-deductible medical insurance for him and his family. In addition, he contributed $2,125 to a Health Savings Account a. How much may Roger deduct if he is self-employed and earned $86,800? Is the deduction for AGI or from AGI? If Roger is self-employed, he may deduct $ AGI. b. How much may Roger deduct if he is an employee (disregarding 10% AGI floor implications)? If...
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable...
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable year the amounts deductible for AGI, from AGI. or not deductible at all. Unless otherwise stated, assume all taxpayers use the cash basis method of accounting and report using the calendar year. a. M spent $1,000 on a life insurance policy covering her own life. b. G is an author of novels. His wife attempted to have him declared insane and have him committed....
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable...
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable year the amounts deductible for AGI, from AGI. or not deductible at all. Unless otherwise stated, assume all taxpayers use the cash basis method of accounting and report using the calendar year. a. M spent $1,000 on a life insurance policy covering her own life. b. G is an author of novels. His wife attempted to have him declared insane and have him committed....
1. Sue is a self-employed. Her net profit from the self-employment in 2018 is $150,000. What’s...
1. Sue is a self-employed. Her net profit from the self-employment in 2018 is $150,000. What’s her deductible portion of SE tax on line 27 of Schedule 1? a) $11,475 b) $10,597 c) $ 9,969 d) $ 9,823 2. Young is single and self-employed. His net profit from the business is $100,000. His SE tax on Schedule SE is $14,130. He contributed $6,000 to his self-employed SEP IRA account. He also paid $7,800 self-employed health insurance premium in 2018. What...
Help Save & Exit Jeremy and Alyssa Johnson have been married for five years and do...
Help Save & Exit Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...
[The following information applies to the questions displayed below.] Smithers is a self-employed individual who earns $35,000 per year in self-employment income. Smithers pays $2,250 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation. c. Smithers is self-employed, and he is also married. Smithers's spouse, Samantha, is employed full-time by SF Power Corporation and...
Required information [The following information applies to the questions displayed below.) Smithers is a self-employed individual who earns $44,000 per year in self-employment income. Smithers pays $2,700 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI limitation. a. Smithers is single, and the self-employment income is his only source of income. Deductible as a for...
Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year. Alyssa worked for Office Depot as an employee. In March. Alyssa accepted a new job with Super Toys Ine. (ST), where she worked for the remainder of the year. This year, the Johnsons received...
Problem 10-28 (Algorithmic) (LO. 2) In the current year, Roger pays a $2,500 premium for high-deductible medical insurance for him and his family. In addition, he contributed $2,125 to a Health Savings Account a. How much may Roger deduct if he is self-employed and earned $86,800? Is the deduction for AGI or from AGI? If Roger is self-employed, he may deduct $ AGI. b. How much may Roger deduct if he is an employee (disregarding 10% AGI floor implications)? If...
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable year the amounts deductible for AGI, from AGI. or not deductible at all. Unless otherwise stated, assume all taxpayers use the cash basis method of accounting and report using the calendar year. a. M spent $1,000 on a life insurance policy covering her own life. b. G is an author of novels. His wife attempted to have him declared insane and have him committed....
7-56 Classification and Deductibility: In each of the following independent situations indicate for the current taxable year the amounts deductible for AGI, from AGI. or not deductible at all. Unless otherwise stated, assume all taxpayers use the cash basis method of accounting and report using the calendar year. a. M spent $1,000 on a life insurance policy covering her own life. b. G is an author of novels. His wife attempted to have him declared insane and have him committed....
Help Save & Exit Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This...
Most questions answered within 3 hours.
-
A junction box contains two trade size 2 raceways on the left
side, and two trade...
asked 29 minutes ago -
Atmospheric Mass
Venus and Earth have about the same mass and radius, but the
atmospheric pressure...
asked 1 hour ago -
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 2 hours ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 3 hours ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 5 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 6 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 6 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 8 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 8 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 8 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 9 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 10 hours ago