Questions from Individual Taxation

Q: Phil and Linda are 25-year-old newlyweds and file

Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. a. Assuming Phil’s wages were $27,000 and Linda’s wages were $18,5...

Q: What is the maximum amount a 55-year-old taxpayer

What is the maximum amount a 55-year-old taxpayer and 52-year-old spouse can put into a Traditional or Roth IRA for 2018, assuming they earn $70,000 in total and are not participants in pension plans?...

Q: Bob is a single, 40-year-old doctor earning

Bob is a single, 40-year-old doctor earning $190,000 a year and is not covered by a pension plan at work. How much can he put into a deductible Traditional IRA in 2018?

Q: Dori is 58 years old and retired in 2018. She receives

Dori is 58 years old and retired in 2018. She receives a pension of $25,000 a year and no other income. She wishes to put the maximum allowed into an IRA. How much can she contribute to her IRA?

Q: During 2018, Jerry is a self-employed therapist, and

During 2018, Jerry is a self-employed therapist, and his net earned income is $160,000 from his practice. Jerry’s SEP Plan, a defined contribution plan, states that he will contribute the maximum amou...

Q: In 2018, Margaret and John Murphy (both over age 65

In 2018, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGl of $25,400. During the year they incurred the following expenses: In addition, they dr...

Q: Stewart Beauf is a self-employed surfboard maker in 2018.

Stewart Beauf is a self-employed surfboard maker in 2018. His Schedule C net income is $125,003 for the year. He also has a part-time job and earns $15,600 in wages subject to FICA taxes. Calculate...

Q: Sally hires a maid to work in her home for $280

Sally hires a maid to work in her home for $280 per month. The maid is 25 years old and not related to Sally. During 2018, the maid worked 9 months for Sally. a. What is the amount of Social Security...

Q: Married taxpayers Otto and Ruth are both self-employed. Otto

Married taxpayers Otto and Ruth are both self-employed. Otto earns $352,000 of self employment income and Ruth has a self-employment loss of $13,500. How much 0.9 percent Medicare tax for high-income...

Q: Ken paid the following amounts for interest during 2018:

Ken paid the following amounts for interest during 2018: Calculate Ken’s itemized deduction for interest on the following portion of Schedule A.