Questions from General Taxation

Q: Michael’s adjusted gross income for 2017 is $90,000.

Michael’s adjusted gross income for 2017 is $90,000. He is age 30 and single with no dependents. What is Michael’s taxable income?

Q: Scott is 15 years old and qualifies as a dependent on his

Scott is 15 years old and qualifies as a dependent on his parents’ tax return. During 2017 he earns $2,500 from a part-time job and also receives $800 of dividend income on stock given to him by his a...

Q: Elena is single but her mother, Maria, lives with her

Elena is single but her mother, Maria, lives with her. Maria’s sole income is $7,000 in Social Security (which she saves for unexpected medical expenses) and $500 of interest income on that account. E...

Q: Kevin is an employee of One Hour Dry Cleaners, Inc.

Kevin is an employee of One Hour Dry Cleaners, Inc. All employees of One Hour are eligible for a 40 percent discount on their dry cleaning. During the year, Kevin paid $300 for cleaning that normally...

Q: Cindy files as head of household and has three dependent children ages

Cindy files as head of household and has three dependent children ages 12, 14, and 16. Her AGI is $80,000. How much can Cindy claim for the child tax credit?

Q: Greg and Barbara, a married couple with an AGI of $

Greg and Barbara, a married couple with an AGI of $80,000, have three children who are full-time college students. They pay $6,000 for tuition annually for each child. One son is a sophomore in coll...

Q: Doris is a single individual with modified AGI of $57,

Doris is a single individual with modified AGI of $57,000. During the year, she paid $11,000 tuition for a master’s in taxation program. How much can Doris claim for the lifetime learning credit?

Q: Hunter Corporation has $250,000 in gross income, $

Hunter Corporation has $250,000 in gross income, $125,000 in deductible business expenses, and a $12,000 business tax credit. Determine the corporation’s net tax liability.

Q: June is a single individual with AGI of $45,000

June is a single individual with AGI of $45,000 for the year. June has a five-year-old son in day care while she works. a. What is her dependent care credit if she spends $5,000 for child care during...

Q: Roland worked for Sorbonne Company for the first four months of 2017

Roland worked for Sorbonne Company for the first four months of 2017 and earned $40,000 from which his employer withheld $3,060 for payroll taxes. In May, Roland accepted a job with Lyon Company. Duri...