Chapter 2, Problem 19CE

Compute the 2023 standard deduction for the following taxpayers. If an amount is zero, enter "0". Click here to access the Exhibits 3.4 and 3.5 to use. a. Ellie is 15 and claimed as a dependent by her parents. She has $775 in dividends income and $2,760 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody $ is 69. Their taxable retirement income is $12,235. C. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $210, and her interest income is $425. d. Frazier, age 50, is married but is filing a separate return. His wife itemizes her deductions. 3,160 29,250 X 1,250 X 0

Ms. Nelson is a single mom with three children who live at home. She earned less than $40,000 in 2018. What is the maximum amount of earned income tax credit that she may qualify for?

Enzo recently used his United SkyMiles to purchase a free round-trip ticket to Dublin, Ireland (value $1,500). The frequent flyer miles used to purchase the ticket were generated from Enzo's business travel as a CPA. Enzo's employer paid for his business trips, and he was not taxed on the travel reimbursement. a) Use an available tax research service to determine how much income, if any, Enzo will have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel. b) Write a memo communicating the results of your research.

Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) b. On the trip, she spent eight days on personal activities and two day(s) on business activities. Deductible amount

Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) c. On the trip, she spent seven days on business activities and three day(s) on personal activities. Deductible amount

Compute the 2023 standard deduction for the following taxpayers: If an amount is zero, enter "0". Click here to access the Exhibits 9.4 and 9.5 to use. a. Ellie is 15 and claimed as a dependent by her parents. She has $1,250 in dividend income and $1,760 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $11,390. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $270, and her interest income is $245. d. Frazier, age 34, is married but is filing a separate return. His wife itemizes her deductions. C. 2,160 27700 3,100 0

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.   Interest income $ 14,975 Salon sales and revenue 88,760 Salaries paid to beauticians 46,550 Beauty salon supplies 23,640 Alimony paid to her ex-husband, Rocky 7,200 Rental revenue from apartment building 35,540 Depreciation on apartment building 14,100 Real estate taxes paid on apartment building 12,060 Real estate taxes paid on personal residence 6,937 Contributions to charity 5,029     a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.   Interest income $ 14,975 Salon sales and revenue 88,760 Salaries paid to beauticians 46,550 Beauty salon supplies 23,640 Alimony paid to her ex-husband, Rocky 7,200 Rental revenue from apartment building 35,540 Depreciation on apartment building 14,100 Real estate taxes paid on apartment building 12,060 Real estate taxes paid on personal residence 6,937 Contributions to charity 5,029       b-1. Complete Schedule 1 of Form 1040 for Betty.   Visit the IRS website and download Schedule 1 of Form 1040. Enter the required values in the appropriate fields. Save your completed Tax…

Kendra is a self-employed taxpayer working exclusively from her home office. Before the home office deduction, Kendra has $6,000 of net income. Her allocable home expenses are $10,000 in total. How are the home office expenses treated on her current year tax return? a.Only $3,000 a year of the home office expenses may be deducted. b.All home office expenses may be deducted, resulting in a business loss of $4,000. c.Only $6,000 of home office expenses may be deducted, resulting in a net business income of zero. None of the remaining $4,000 of home office expenses may be carried forward or deducted. d.Only $6,000 home office expenses may be deducted, resulting in net business income of zero. The remaining $4,000 of home office expenses may be carried forward and deducted in a future year against business income.