Amounts withdrawn from qualified tuition plans are tax-free…
Amounts withdrawn from qualified tuition plans are tax-free if the amounts are used for qualified higher education expenses including tuition, fees, books, and room and board for students attending on at least a half-time basis.
Read DetailsKadeisha is single with no dependents and has a salary of $1…
Kadeisha is single with no dependents and has a salary of $102,000 for 2023, along with tax-exempt interest income of $3,000 from a municipality. Her itemized deductions are comprised of home mortgage interest expense and property taxes totaling $11,600.Required: Compute her taxable income. Please show supporting computations.
Read DetailsMs. Walter, age 70, is thinking about going back to work par…
Ms. Walter, age 70, is thinking about going back to work part-time. She knows that the wages may affect the taxability of her Social Security benefits. What is the maximum percentage of Social Security benefits that could become taxable?
Read DetailsRandy and Sharon are married and have two dependent children…
Randy and Sharon are married and have two dependent children. Their 2023 tax and other related information is as follows: a. Total salaries $160,000 b. Bank account interest income 3,500 c. Municipal bond interest income 1,500 d. Value of employer provided medical insurance 12,500 e. Employer paid premiums for $50,000 of group term life insurance 5,500 f. Dividend income from ABC stock 2,000 g. Loan from Randy’s parents 5,000 h. Gift from Randy’s parents 15,000 i. Gain from the sale of qualified small business stock acquired in 2008 18,000 j. Total itemized deductions 30,500 For each item shown, indicate the amount $0 or the amount of taxable income or the deduction. Also, provide the total taxable income.
Read DetailsTheo’s wife moved overseas in April, and they have not been…
Theo’s wife moved overseas in April, and they have not been in touch, although they are still legally married. Theo pays all the costs of the household which includes his 12-year-old son. Because Theo is still married, his only option is to file his tax return as married filing separately.
Read DetailsNorah, who gives music lessons, is a calendar-year taxpayer…
Norah, who gives music lessons, is a calendar-year taxpayer using the cash-basis accounting. On October 1 of this year, she received $1,200 for a one-year contract beginning on that date to provide 10 lessons. She gave 6 lessons this year. How much should Norah include in income this year?
Read Details