Questions from General Taxation

Q: Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis

Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $20,000, and her insurance company paid $5,000 t...

Q: Does the tax on unearned income of minor children, or “

Does the tax on unearned income of minor children, or “kiddie tax,” apply to wages earned by minors in summer and other jobs?

Q: In 2016, Margaret and John Murphy (both over age 65

In 2016, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGl of $26,500. During the year they incurred the following expenses: Medical insurance pre...

Q: Janet needs an elevator seat attached to her stairs since she has

Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase t...

Q: Cindy and Paul are married and live together in Arizona. During

Cindy and Paul are married and live together in Arizona. During the year, Paul receives a salary of $45,000 and $4,000 of dividends from stock that is his separate property. Cindy receives a salary of...

Q: Lyndon’s employer withheld $1,800 in state income taxes from

Lyndon’s employer withheld $1,800 in state income taxes from Lyndon’s wages. Lyndon obtained a refund of $200 this year for overpayment of state income taxes for last year. State income taxes were an...

Q: Mike sells his home to Jane on April 2, 2016.

Mike sells his home to Jane on April 2, 2016. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property taxes...

Q: Laura is a single taxpayer living in New Jersey with adjusted gross

Laura is a single taxpayer living in New Jersey with adjusted gross income for the 2016 tax year of $35,550. Laura’s employer withheld $3,300 in state income tax from her salary. In...

Q: List the rules that apply to taxpayers without a qualifying child in

List the rules that apply to taxpayers without a qualifying child in order to claim the EIC.

Q: Mary paid $2,000 of state income taxes in 2016

Mary paid $2,000 of state income taxes in 2016. The total sales tax she paid during 2016 was $4,500, which included $3,000 for the cost of a new car. How should Mary treat the taxes paid on her 2016 t...