Hillary Claxton needs to calculate her effective tax rate. She gives you the following income information: Salary $100,000,                                                                                                                                                            Interest income $4,500,                                                                                                                                              Municipal bond interest $12,000. She has $21,000 in itemized deductions. The standard deduction this year is $24,400 and will she and her husband Bill will file as MFJ. Her husband Bill is retired and has no income.Calculate Hillary’s effective tax rate using the following tax rate schedule information  Income of $19,400 -$78,950               tax is $1,940+12% of the amount over $19,400 Income of $78,950 – $168,400            tax is $9,086 +22% of the amount over $78,950 Income of $168,400 – $321,450        Tax is $28,765 +24% of the amount over $168,400

Which of the following must be present in a divorce agreement for a payment to qualify as alimony?I. Payments must be made in cashII. Payments must end at the recipient’s death

Diane Nix  was divorced in June 2014. Her son who is 12, lived with her the entire year. It cost $20,000 to maintain her home and she paid all of this total. Her ex-husband, Jack, paid $5,000  in child support payments. Diane provided $15,000 in support of their son. What is the best filing status for Diane?

Nicole’s husband died during 2011. She did not remarry and continued to maintain her home for her and her infant daughter during 2012, and 2013. Nicole was the sole source of the family’s income.  What is Nicole’s filing status in 2013?

Walter deducted $4,400 of state income taxes as an itemized deduction on his tax return last year. This year he received a state income tax refund of $400. Last year, his itemized deductions were $25,000. Assume the standard deduction amount for last year was $24,400. What amount of the refund, if any, is taxable this year to Walter?

Which of the following statements are true concerning an accountant’s disclosure of confidential client data?

Harriet is divorced. Her friends, the Gerards, are moving to France. Their daughter Annette is 20 and is a junior in college. She did not want to move out of the country before she graduates.Harriet agrees to let Annette live with her beginning January 1 of this year so that she can stay in the same school until she graduates next year. Annette will live in France with her parents during August, but live with Harriet the rest of the time.Annette did not have any taxable income. Her parents paid for all of Annette’s expenses. Which of the following is true?

Pam Peters was recently injured on a construction site where she worked in 2020.  She received worker’s compensation benefits f $3000. She had to quit this job and take one that was less physically demanding. She received unemployment benefits of $6,000 during her job search. Which of these amounts are taxable, if any?

Jeff invested in Bitcoin several years ago and has been using them to play fantasy football online. His CPA just told him that each transaction was actually a taxable event. He reluctantly reconstructed the details of his purchases and realized he has understated his taxable income for last year by 30%. When does the statute of limitations expire on his 2018 return that was filed on July 15, 2019?

Shonna pays her ex-husband alimony of $2,000 per month and child support of $4000 per month. This month she is short on cash and is only able to pay $2000 total to her ex-husband. What is the character of this $2000? Shonna’s divorce decree was finalized in 2015.