Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence:Room at Lakeside$24,975Meals for Lawrence at Lakeside4,995Doctor and nurse fees at Lakeside3,746Cable TV service for Lawrence's room at Lakeside500Total$34,216Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba?

Step 1: Understanding Qualifiable Medical ExpensesMedical expenses for tax purposes include payments…

Answered: Reba is a single taxpayer. Lawrence,…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 20P

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Malin is a married taxpayer and has three dependent children. Malin's employer offers health insurance for employees and Malin takes advantage of the benefit for her entire family (her spouse's employer also offers health insurance but they opt out). During the year, Malin paid $ 1,200 toward her family's health insurance premiums through payroll deductions while the employer paid the remaining $ 9,200. Malin's family visited health care professionals numerous times during the year and made total copayments toward medical services of $280. Malin's daughter had knee surgery due to a soccer injury and the insurance company paid the hospital $ 6,700$ directly and reimbursed Malin $400 for her out-of-pocket health care expenses related to the surgery. How much gross income should Malin recognize related to her health insurance? $0 $ 9,200 14,020(9,200+6,7001,200280400) 8,000(9,2001,200) None of the above
How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.
1. Reba is a single taxpayer. Lawrence, Reba's 84-year-old dependent grandfather, lived with Reba until this year, when he moved to Lakeside Nursing Home because he needs specialized medical and nursing care. During the year, Reba made the following payments on behalf of Lawrence: Room at Lakeside $11,000 Meals for Lawrence at Lakeside 2,200 Doctor and nurse fees at Lakeside 1,700 Cable TV service for Lawrence's room at Lakeside 380 Total $15,280 Lakeside has medical staff in residence. Disregarding the AGI floor, how much, if any, of these expenses qualifies for a medical expense deduction by Reba? 2. Donna donates stock in Chipper Corporation to the American Red Cross on September 10, 2020. She purchased the stock for $18,100 on December 28, 2019, and it had a fair market value of $27,000 when she made the donation. a. What is Donna's charitable contribution deduction?The stock is treated as ordinary income property and Donna's charitable contribution…

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