Questions from Individual Taxation

Q: Compare and contrast an employee’s FICA tax payment responsibilities with those of

Compare and contrast an employee’s FICA tax payment responsibilities with those of a self-employed taxpayer.

Q: In 2016, Janet and Ray are married filing jointly. They

In 2016, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray’s taxable income is $140,000, and they itemize their deductions as follows: re...

Q: Once they’ve computed their taxable income, how do taxpayers determine their

Once they’ve computed their taxable income, how do taxpayers determine their regular tax liability? What additional steps must taxpayers take to compute their tax liability when they have preferential...

Q: In 2016, Deon and NeNe are married filing jointly. They

In 2016, Deon and NeNe are married filing jointly. They have three dependent children under 18 years of age. Deon and NeNe’s AGI is $811,300, their taxable income is $720,250, and they itemize their d...

Q: Brooke works for Company A for all of 2016, earning a

Brooke works for Company A for all of 2016, earning a salary of $50,000. a. What is her FICA tax obligation for the year? b. Assume Brooke works for Company A for half of 2016, earning $50,000 in sa...

Q: Rasheed works for Company A, earning $350,000 in

Rasheed works for Company A, earning $350,000 in salary during 2016. Assuming he has no other sources of income, what amount of FICA tax will Rasheed pay for the year?

Q: Alice is self-employed in 2016. Her net business profit

Alice is self-employed in 2016. Her net business profit on her Schedule C for the year is $140,000. What is her self-employment tax liability for 2016?

Q: Kyle worked as a free-lance software engineer for the first

Kyle worked as a free-lance software engineer for the first three months of 2016. During that time, he earned $44,000 of self-employment income. On April 1, 2016 Kyle took a job as a full-time softwar...

Q: Eva received $60,000 in compensation payments from JAZZ Corp

Eva received $60,000 in compensation payments from JAZZ Corp. during 2016. Eva incurred $5,000 in business expenses relating to her work for JAZZ, Corp. JAZZ did not reimburse Eva for any of these exp...

Q: Terry Hutchison worked as a self-employed lawyer until two years

Terry Hutchison worked as a self-employed lawyer until two years ago when he retired. He used the cash method of accounting in his business for tax purposes. Five years ago, Terry represented his clie...