Homework Answers
The correct option is
He will not be able to take a federal income deduction for contribution to Coverdell Education Savings Account.
Federal law allows taxpayers to purchase EE series only upto certain limits. Over this limit, any interest is taxable. So, this is incorrect.
The adjusted gross income of $ 97,000 falls in the tax bracket of 24%.
When the taxpayer falls in 24% tax bracket, dividend is taxable at that rate and not 0%.
Hence, b and c are incorrect.
To qualify for $ 2000 full deduction as single taxpayer for contribution to Coverdell education savings account, the taxpayer shall have adjusted gross income upto $ 95,000. Over this limit, phaseout deduction is applicable. Hence, this statement is correct.
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Joe, age 65, files as single. He has adjusted gross income of $97,000 in 2019. Which...
In 2019, Richard, a single taxpayer, has adjusted gross income of $40,200. His AGI includes $4.000...
In 2019, Richard, a single taxpayer, has adjusted gross income of $40,200. His AGI includes $4.000 of qualified dividends. Richard does not itemize deductions. What is his 2019 federal income tax? O A. $3,166 O B. $2,686 OC. $3,286 OD. None of the above. Click to select your answer. ^ f 3 6:59 PM
Molly Whitman is a single taxpayer under the age of 65 and has adjusted gross income...
Molly Whitman is a single taxpayer under the age of 65 and has adjusted gross income (AGI) in 2019 equal to $215,000. She reported the following financial information pertaining to her 2019 activities: a) Molly incurs $6,800 of qualified medical expenses in 2019. b) Molly's state income tax withholdings for 2019 equal $6,100. c) In 2019, Molly was due a refund of $725 for overpaying her 2018 state taxes. She elected to have this overpayment applied toward her 2019 state...
Critical thinking problems In September 2019, Bill and Linda, a married couple with $50,000 gross income....
Critical thinking problems In September 2019, Bill and Linda, a married couple with $50,000 gross income. cashed qualified Series EE U.S. Savings Bonds which they had purchased in 2009. The proceeds were used to help pay for their son's 2019 college tuition. They received gross proceeds of $3,500, representing principal of $3,000 and interest of $500. The qualified higher education expenses they paid in 2019 totaled $2,100. Their modified adjusted gross income for the year was $20,000. How much of...
Problem 6-34 (Algorithmic) (LO. 1) Daniel, age 38, is single and has the following income and...
Problem 6-34 (Algorithmic) (LO. 1) Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $141,000 Net rent income 21,500 Dividend income 2,500 30,000 8,300 3,000 1,500 Payment of alimony (divorce finalized in March 2019) Mortgage interest on residence Property tax on residence Contribution to traditional IRA (assume the amount is fully deductible) Contribution to United Church Loss on the sale of real estate (held for investment) Medical expenses State income tax Federal income...
Aaron, single, age 43, had AGI of $60,000 for 2019. He paid the following medical expenses...
Aaron, single, age 43, had AGI of $60,000 for 2019. He paid the following medical expenses in 2019: Hospital expenses - skiing accident $5,600 Doctor bills & Prescriptions 1,400 Surgeon to get a nose job (not related to skiing injury) 5,000 Medical expenses he paid for his child (claimed by his former wife as a dependent). 1,200 Nursing care expenses for Aaron’s dependent Father, including $600 for cable TV for his room. 6,000 Medical and dental premiums (his share), deducted...
• Noah, age 65, and Ella, age 54, are married. They elect to fle Married Filing...
• Noah, age 65, and Ella, age 54, are married. They elect to fle Married Filing Jointly. • Their son Leo is 23 years old and a full-time college student in his third year of study He is pursuing a degree in Business Administration and does not have a felony drug conviction His 2018 Form 1098-T did not have an amount entered in box 2 • Their son Freddie is 26 years old and graduated from college in June 2019...
Mark for follow up Question 67 of 75. Which of the following taxpayers does not qualify...
Mark for follow up Question 67 of 75. Which of the following taxpayers does not qualify for the exclusion of interest from Series EE and I U.S. Savings Bonds on Form 8815. All bonds held by the taxpayers were issued after 1989. Janet paid qualified higher education expenses in 2018 for her dependent who is a Junior in College. Her modified adjusted gross income (AGI) is $65,775. U Sasha has two dependents and files as head of household, her modified...
Ramon had AGI of $218,000 in 2019. He is considering making a charitable contribution this year...
Ramon had AGI of $218,000 in 2019. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability. a. A cash gift of $109,000. In the current year, Ramon may deduct $ since his charitable contribution is limited...
Chen is a single person, age 35, with no dependents. In 2019, Chen has gross income...
Chen is a single person, age 35, with no dependents. In 2019, Chen has gross income of $80,000 from his sole proprietorship. Chen also incurs $75,000 of deductible business expenses in connection with his proprietorship. He has interest and dividend income of $22,000. Chen has no itemized deductions. What is Chen's taxable income?
on February 14,2020, John who is single and age 30, establishes a traditional IRA and contributes...
on February 14,2020, John who is single and age 30,
establishes a traditional IRA and contributes $6,000 to the
account. John's adjusted gross income is $73,000 in 2019 and
$59,500 in 2020.John is an active participant in an
employer-sponsored retirement plan.
i Requirements a. What amount of the contribution is deductible? In what year is it deductible? b. How is the deduction (if any) reported (i.e., for AGI or from AGI)? c. How would your answer to Part a change,...
In 2019, Richard, a single taxpayer, has adjusted gross income of $40,200. His AGI includes $4.000 of qualified dividends. Richard does not itemize deductions. What is his 2019 federal income tax? O A. $3,166 O B. $2,686 OC. $3,286 OD. None of the above. Click to select your answer. ^ f 3 6:59 PM
Critical thinking problems In September 2019, Bill and Linda, a married couple with $50,000 gross income. cashed qualified Series EE U.S. Savings Bonds which they had purchased in 2009. The proceeds were used to help pay for their son's 2019 college tuition. They received gross proceeds of $3,500, representing principal of $3,000 and interest of $500. The qualified higher education expenses they paid in 2019 totaled $2,100. Their modified adjusted gross income for the year was $20,000. How much of...
Problem 6-34 (Algorithmic) (LO. 1) Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $141,000 Net rent income 21,500 Dividend income 2,500 30,000 8,300 3,000 1,500 Payment of alimony (divorce finalized in March 2019) Mortgage interest on residence Property tax on residence Contribution to traditional IRA (assume the amount is fully deductible) Contribution to United Church Loss on the sale of real estate (held for investment) Medical expenses State income tax Federal income...
Mark for follow up Question 67 of 75. Which of the following taxpayers does not qualify for the exclusion of interest from Series EE and I U.S. Savings Bonds on Form 8815. All bonds held by the taxpayers were issued after 1989. Janet paid qualified higher education expenses in 2018 for her dependent who is a Junior in College. Her modified adjusted gross income (AGI) is $65,775. U Sasha has two dependents and files as head of household, her modified...
Ramon had AGI of $218,000 in 2019. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability. a. A cash gift of $109,000. In the current year, Ramon may deduct $ since his charitable contribution is limited...
on February 14,2020, John who is single and age 30,
establishes a traditional IRA and contributes $6,000 to the
account. John's adjusted gross income is $73,000 in 2019 and
$59,500 in 2020.John is an active participant in an
employer-sponsored retirement plan.
i Requirements a. What amount of the contribution is deductible? In what year is it deductible? b. How is the deduction (if any) reported (i.e., for AGI or from AGI)? c. How would your answer to Part a change,...
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