Questions from Federal Taxation

Q: Joe and Joan divorce during the current year. Joan receives custody

Joe and Joan divorce during the current year. Joan receives custody of their three children. Joe agrees to pay $5,000 of child support for each child. a. Assuming no written agreement, who will recei...

Q: In 2017, Lana, a single taxpayer with AGI of $

In 2017, Lana, a single taxpayer with AGI of $85,400, claims exemptions for three dependent children, all under age 17. What is the amount of her child credit?

Q: Which tax form is used by the following individuals? a

Which tax form is used by the following individuals? a. Anita is single, age 68, and has a salary of $22,000 and interest of $300. b. Betty owns an apartment complex that produced rental income of $3...

Q: Ed has supported his stepdaughter, her husband, and their child

Ed has supported his stepdaughter, her husband, and their child since his wife’s death three years ago. Ed promised his late wife that he would support her daughter from a former marriage and her daug...

Q: Bob and Sue were expecting a baby in January, but Sue

Bob and Sue were expecting a baby in January, but Sue was rushed to the hospital in December. She delivered the baby but it died the first night. Are Bob and Sue entitled to a dependency exemption for...

Q: Larry has severe vision problems and, in the past, he

Larry has severe vision problems and, in the past, he has claimed the additional standard deduction available to blind taxpayers. This year Larry’s doctor prescribed a new type of contact lens that gr...

Q: Jack is starting a business that he expects to produce $60

Jack is starting a business that he expects to produce $60,000 of income this year before compensating Jack for his services. He has $1,000 of other income and itemized deductions totaling $10,000. He...

Q: Andrea, who is in the 39.6% tax bracket

Andrea, who is in the 39.6% tax bracket, is interested in reducing her taxes. She is considering several alternatives. For each alternative listed below, indicate how much tax, if any, she would save?...

Q: Jim and Linda are your tax clients. They were divorced two

Jim and Linda are your tax clients. They were divorced two years ago, and the divorce decree stated that Jim was to make monthly payments to Linda. The court designated $300 per month as alimony and $...

Q: John and Mary have two small children and are looking for ways

John and Mary have two small children and are looking for ways to help fund the children’s college education. They have heard that Series EE bonds are a tax-favored way of saving and have requested yo...