Question 1

Atlas earned $17,300 from his sole proprietorship in 2019.This was his only source of income.How much in self-employment taxes will Atlas be able to deduct?

Accepted Answer

The answer of Atlas earned $17,300 from his sole proprietorship...

Question 2

Akiko and Hitachi (married filing jointly for 2019)are both educators.They attended a conference to further their job-related skills.Tuition for the conference was $2,000 for each person.Their AGI was $122,000.How much lifetime learning credit can they claim?

Accepted Answer

The answer of Akiko and Hitachi (married filing jointly for...

Question 3

Clarissa's gross tax liability for 2019 is $1,300.She has a $1,500 nonrefundable personal tax credit, a $750 business tax credit, and a $400 refundable personal tax credit.Her employer withheld $1,000 from her pay for taxes.What is her net tax due or refund for this year?

Accepted Answer

The answer of Clarissa's gross tax liability for 2019 is...

Question 4

Johann had a gross tax liability of $22,508 in 2019, but his employer only withheld taxes of $19,500.Johann's gross tax liability was $21,000 in 2018.Calculate Johann's under/overpayment in each quarter for 2019 tax purposes.

Accepted Answer

The answer of Johann had a gross tax liability of...

Question 5

Julien and Sarah are married, file a joint return, and have two children, Kaya and Christopher.Kaya just finished her third year at college and Christopher just finished his first year of graduate school (fifth year of college).Tuition and books for the past year were $1,800 for Kaya and $5,000 for Christopher.How much can Julien and Sarah claim in educational credits if their joint AGI was $126,000 for 2019?

Accepted Answer

The answer of Julien and Sarah are married, file a...

Question 6

Assume Georgianne underpaid her estimated tax liability by $150 in the first quarter, $500 in the second quarter, $400 in the third quarter, and $200 in the fourth quarter.Calculate her underpayment penalty for the year, assuming the federal short-term interest rate is 5 percent.

Accepted Answer

The answer of Assume Georgianne underpaid her estimated tax liability...

Question 7

In 2019, John (52 years old)files as a head of household with one 18-year old dependent (qualifying)child.John is eligible to claim a $700 American opportunity credit for the year.John did not have any taxes withheld by his employer during the year and he did not make any estimated tax payments.After taking credits into account, what is the amount of John's taxes payable or refund, assuming that his AGI is $26,000 (all from salary)and his taxable income is $8,000?

Accepted Answer

The answer of In 2019, John (52 years old)files as...

Question 8

Demeter is a single taxpayer.Her AGI in 2019 is $209,200.Demeter may claim a child tax credit for her daughter Persephone.What amount of child tax credit is Demeter entitled to claim after any applicable phase-out?

Accepted Answer

The answer of Demeter is a single taxpayer.Her AGI in...

Question 9

During all of 2019, Mr.and Mrs.Clay lived with their four children (all are under the age of 17).They provided over one-half of the support for each child.Mr.and Mrs.Clay file jointly for 2019.Neither is blind, and both are under age 65.They reported the following tax-related information for the year.(Use the tax rate schedules)
 $\begin{array}{llcc}
  \text {Salary income  } &\$125,000  \
 \text {Prize from local radio station  } &1,500\
 \text {Medical expenses (no health insurance)  } &4,000\
 \text {Real estate taxes  } &4,200\
 \text { Alimony paid by Mr. Clay (divorced in 2015) } &12,000\
 \text {State income taxes withheld in 2019  } &1,800\
  \text { State income taxes paid with 2019 tax return (return was filed in April  } &  \
 \text { 2020) } &1,500\
 \text {Federal incometax withholding  } &7,500\
 \text {Qualified home mortgage interest (acquisition debt of  \$ 300,000)   } &15,000\
 \text { Charitable contributions } &4,000\
\end{array}$
 1.What are the Clays' taxes payable or refund due? (Ignore the alternative minimum tax.)
2.What are the Clays' tentative minimum tax and alternative minimum tax?

Accepted Answer

The answer of During all of 2019, Mr.and Mrs.Clay lived...

Question 10

Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work.His AGI for the year was $37,500 (all earned income).What is the amount of his child and dependent care credit?

Accepted Answer

The answer of Jack paid $5,000 in daycare expenses for...

Question 11

In 2019, Shawn's AGI is $170,000.He earned the income evenly throughout the year.He owed $29,890 in federal income tax and self-employment taxes of $2,590.Last year, he had a gross tax liability of $50,000.What is the minimum quarterly estimated tax payment Shawn must pay each quarter to avoid underpayment penalties for 2019?

Accepted Answer

The answer of In 2019, Shawn's AGI is $170,000.He earned...

Question 12

Keith and Nicole are married filing jointly, with two daughters who qualify as dependents.Their gross income for 2019 is $25,500.Are they required to file a tax return? How do you know this without memorizing the gross income thresholds? In 2019, the standard deduction for taxpayers filing a joint return is $24,400.

Accepted Answer

The answer of Keith and Nicole are married filing jointly,...

Question 13

Sam is 30 years old.In 2019, he reported an AGI of $12,000, all from his job as a server at the local café.He is single and has no dependents.What amount of earned income credit may he claim in 2019? Use Exhibit 8-10

Accepted Answer

The answer of Sam is 30 years old.In 2019, he...

Question 14

Wolfina's twins, Romulus and Remus, finished their first year of school at an accredited university in 2019.She paid $10,000 in qualified educational expenses for Romulus and $2,000 of qualifying expenses for Remus.Wolfina is a head of household with an AGI of $85,000.What amount of American opportunity credit may she claim?

Accepted Answer

The answer of Wolfina's twins, Romulus and Remus, finished their...

Quiz 8: Individual Income Tax Computation and Tax Credits