Exam 18: Determination of Tax

Taquin,age 67 and single,paid home mortgage interest of $5,000,charitable contributions of $5,000 and property taxes of $4,000 in 2019.He has no dependents.Taquin will claim a deduction from AGI of

Married couples will normally file jointly.Identify a situation where a married couple may prefer to file separately.

Anna is supported entirely by her three sons John,James,and Joseph who provide for her support in the following percentages: John: 10%,James: 40%,Joseph: 50% Assuming a multiple support declaration exists,which of the brothers may claim his mother as a dependent?

A corporation has revenue of $350,000 and deductible business expenses of $240,000.What is the federal income tax,before credits?

Elise,age 20,is a full-time college student with earned income from wages of $4,400 and interest income of $500.Elise's parents provide more than half of her support.Elise's 2019 taxable income is

Michelle,age 20,is a full-time college student with earned income from wages of $5,200 and interest income of $700.Michelle's parents provide more than half of Michelle's support.Michelle's 2019 taxable income is

A $10,000 gain earned on stock held 13 months is taxed in a more favorable manner than a $10,000 gain earned on stock held 11 months.

The standard deduction may not be claimed by one married taxpayer filing a separate return if the other spouse itemizes deductions.

Tom and Alice were married on December 31 of last year.What is their filing status for last year?

The requirement to file a tax return is based on the individual's adjusted gross income.

Generally,deductions for (not from)adjusted gross income are personal expenses specifically allowed by tax law.

Cheryl is claimed as a dependent by her parents.She had a part-time job during 2019 and earned $4,900 during the year,in addition to $600 of interest income.What is her standard deduction?

When a spouse dies,the surviving spouse for the year of death

For purposes of the dependency criteria,a qualifying child may not provide more than one-half of his or her own support during the year.

Blaine Greer lives alone.His support comes from the following sources: Buddy (his son) \ 2,600 Ken (his brother) 4,200 Martha (his daughter) 2,300 Natalie (a friend) 1,00 Total support \ 10,100 Assuming a multiple support declaration exists,which of the individuals may claim Blaine as a dependent?

If an individual with a taxable income of $15,000 has a long-term capital gain,it is taxed at

David's father is retired and receives $14,000 per year in Social Security benefits.David's father saves $4,000 of the benefits and spends the remaining $10,000 for his support.How much support must David provide for his father to meet the dependent support requirement?

Julia provides more than 50 percent of the support for three individuals: Theresa,an unrelated child who lives with Julia all year long; Margaret,Julia's cousin,who lives in another city; and Emma,Julia's daughter,who lives in her own home.Each of the potential dependents earned less than $4,200.How many dependents can Julia claim?

Tax returns from individual and C corporate taxpayers are due on the 15th day of the third month following the close of the tax year.

A sole proprietor is tentatively eligible for the 20% qualified business income deduction.The taxpayer will only be able to deduct the amount if she claims itemized deductions.