t's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in letermining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 vhile he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis.

t's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in letermining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 vhile he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter9: Individuals As Taxpayers

Section: Chapter Questions

Problem 24P

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It's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in determining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 while he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis. Required: 1. Complete the "The tax is:" column for each filing status table using a formula 2. Prepare a comparison for Marie using VLOOKUP formulas to the 2022 tax brackets. (HINT: Use the TRUE logical value) Schedule X - Single If taxable income is over: But not over: The tax is: Plus: ssssssss $ $ 10,275.00 $ 10% $ 10,275.00 $…
Juan and Maria, who have two young children, are in the process of obtaining a divorce. Juan expects to have $250,000 of income each year while Maria expects to have $180,000 of income each year. Assume the children will live with Maria after the divorce and that Juan will pay child support. What advice can you provide them regarding the child credit? A. The child credit is phased out for single taxpayers with AGI above $400,000. Juan will be entitled to the child credit because his income is below the threshold. The credit is only available to taxpayers who claim the children as dependents, so it would be beneficial to allow Juan to claim the children. The tax savings received by Juan should be considered when the amount of child support that Juan must pay is being determined. B. Juan's AGI exceeds $200,000, but Maria's AGI does not. The child credit thus would be reduced if Juan claims it, but there would be no reduction if Maria claims it. Overall,…
It's mid-December and Marie is finalizing her divorce. Generally, she and her soon to be ex-spouse have been amicable, and Marie is looking forward to being single. The divorce attorneys will be ready to complete the proceedings before December 31, but Marie is concerned about tax implications. Marie has asked for your help in determining whether to wait until the beginning of next year in order to minimize taxes. The couple has two children and expect each will take custody of one child maintaining their own households. Marie's taxable income is $90,000 while he soon-to-be ex-spouse's taxable income is $40,000. Ignore any tax credits in your analysis. Please include work shown to get the answer for the taxes.
Matt and Melanie have been married for 12 years and have no children. They are divorcing on January 1, 2021. Matt comes to you for tax advice. As part of their divorce, Melanie will pay Matt $2,000/month alimony until Matt finishes graduate school and can secure full-time employment (approx. 25 months). What amount, if any, does Matt included in gross income? Assume the divorce agreement is finalized January 1, 2021, and Matt receives 12 payments ($24,000 total) in 2021. Matt and Melanie finalized their divorce agreement on January 1, 2018. What amount, if any, of the $24,000 in total alimony payments that Melanie makes in 2021 ($2,000/month * 12 months) will Melanie be able to deduct on her 2021 federal income tax return?
tim is living with his spouse in California when he finds out that his wife is having an affair. Tim packs his bags and leaves the state to move to Indiana, intending on filing separately. Tim and his spouse cohabitated until June. He earned $50,000 during the year, $30,000 of which was in California. She earned $60,000 during the year. How much wage income does Tim have on his California return and from whom? (Remember, the return is being filed separately) He has $50,000 in state wages from his pay only, since he's no longer in a community property state. He has $45,000 in state wages, with $15,000 from half of his state-sourced pay and $30,000 from her half of pay. He has $55,000 in state wages, with $25,000 from half of his total pay and $30,000 from her half of pay. He has $30,000 in state wages from his state-sourced pay.
Mark Rosenberg and Trina Adams are to be married in two months. Both are employed full time and currently have their own apartments. Once married, they will move into Trina's apartment because it is larger. They plan to use Mark's rent money to begin saving for a down payment on a home to be purchased in four or five years. Mark has a checking account at a branch of a large regional commercial bank near his workplace where he deposits his paychecks. He also has three savings accounts-one at his bank and two small accounts at a savings and loan association near where he went to college. Mark pays about $30 per month in fees on his various accounts. In addition, he has a $10,000 certificate of deposit (CD) from an inheritance; this CD will mature in five months. Trina has her paycheck directly deposited into her share draft account at the credit union where she works. She has a savings account at the credit union as well as a money market account at a stock brokerage firm that was set up…
Nigel and Sylvia are married and are both residents of, and domiciled in, California. On August 31 of 2022, they separated and filed for divorce with no intentions of reconciling. Nigel earned $4,000 each month during the year and Sylvia earned $2,000 a month from June through the end of the year. A joint bank account paid them interest of $200 each month. They will file married/RDP filing separately. How much income will be reported on Sylvia's tax return? $46,000+ $1,000 = 849,200 Nigel $4,000/m x 12 Sylvice $2,000/m x 28= $200/m x 12 $2,400 $7,000 $8,200 $28,200 $32,200 Mark for follow up 519,000 $1,200 20 13,008) 2,000 X 7= $14,000 + 200X (12 12,000 X 12 200
Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2022 Christmas season and get married around the end of the year. In 2022, Raphael expects to earn $45,900 and Martina expects to earn $16,800. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. Required: They are trying to decide whether they should get married on December 31, 2022, or on January 1, 2023. What do you recommend? Use the appropriate Tax Tables. If Raphael and Martina get married in 2022 If Raphael and Martina get married in 2023 Recommendation: Collective tax liability in 2022 Thus, for tax purposes, it makes more sense for Raphael and Martina to get married in 2022. Thus, for tax purposes, it makes more sense for Raphael and Martina to get married in 2023.
Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2022 Christmas season and get married around the end of the year. In 2022, Raphael expects to earn $45,500 and Martina expects to earn $16,000. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. Required: They are trying to decide whether they should get married on December 31, 2022, or on January 1, 2023. What do you recommend? Use the appropriate Tax Tables. If Raphael and Martina get married in 2022 If Raphael and Martina get married in 2023 Recommendation Collective tax liability in 2022
Danny and Sandy have come to your office to discuss some retirement planning issues. Danny will be turning age 65 in five months and Sandy is currently 63. Danny has not started collecting Social Security benefits yet because he is still working, and he is unsure whether he will retire this year or wait a few more years. Sandy has never worked outside the home. If he continues to work, Danny will have health insurance for both himself and Sandy through his employer with a $250 annual per person deductible, a 90% coinsurance, and a maximum out-of-pocket limit of $5,000. Danny’s share of the premium is $50 per pay. Many of their retirement questions have to do with Medicare and health insurance because both Danny and Sandy have existing health issues. All the following statements are proper advice for you to give Danny and Sandy, EXCEPT: Danny should delay enrollment in Medicare Part B until he is no longer covered under his employer’s health plan. Sandy will be eligible for…
Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2022 Christmas season and get married around the end of the year. In 2022, Raphael expects to earn $45, 300 and Martina expects to earn $15,600. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. Required: They are trying to decide whether they should get married on December 31, 2022, or on January 1, 2023. What do you recommend? Use the appropriate Tax Tables.
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $5,000 and never have to pay annual membership dues.Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues? (Note: Round your answer up to the nearest…