Questions from Individual Taxation

Q: What is the tax marriage penalty and when does it apply?

What is the tax marriage penalty and when does it apply? Under what circumstances would a couple experience a tax marriage benefit?

Q: Clyde currently commutes 55 miles to work in the city. He

Clyde currently commutes 55 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to...

Q: In 2016, for a taxpayer with $50,000 of

In 2016, for a taxpayer with $50,000 of taxable income, without doing any actual computations, which filing status do you expect to provide the lowest tax liability? Which filing status provides the h...

Q: Smithers is a self-employed individual who earns $30,

Smithers is a self-employed individual who earns $30,000 per year in self-employment income. Smithers pays $2,200 in annual health insurance premiums (not through an exchange) for his own medical car...

Q: Betty operates a beauty salon as a sole proprietorship. Betty also

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. Determine Betty’s AGI and complete pa...

Q: Lionel is an unmarried law student at State University Law School,

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used th...

Q: This year Jack intends to file a married-joint return with

This year Jack intends to file a married-joint return with two dependents. Jack received $162,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent...

Q: In each of the following independent cases, indicate the amount (

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limita...

Q: Ted is a successful attorney, but when he turned 50 years

Ted is a successful attorney, but when he turned 50 years old he decided to retire from his law practice and become a professional golfer. Ted has been a very successful amateur golfer, so beginning...

Q: Penny, a full-time biochemist, loves stock car racing

Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt-track car and has started entering some local dirt-track races. The prize money is pretty small ($1,0...