Questions from Individual Taxation

Q: Julie, a single taxpayer, has completed her 2018 Schedule C

Julie, a single taxpayer, has completed her 2018 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $12,000 in 2018. a. Calculate...

Q: Susan and Stan Collins live in Iowa, are married and have

Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2018, Susan’s income is $38,290 and Stan’s is $12,000 and both are self-emp...

Q: The Taxpayer Bill of Rights lists 10 different rights. Name four

The Taxpayer Bill of Rights lists 10 different rights. Name four of those rights.

Q: Using the information in the previous question, assume that the Collins’

Using the information in the previous question, assume that the Collins’ Form 1095-A also indicated that the total advance payment of the premium tax credit was $9,200. Calculate the...

Q: Ann hires a nanny to watch her two children while she works

Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $170 per week for 42 weeks during the current year. a. What is the employer’s portion o...

Q: Karen, 28 years old and a single taxpayer, has a

Karen, 28 years old and a single taxpayer, has a salary of $31,000 and rental income of $33,000 for the 2018 calendar tax year. Karen is covered by a pension through her employer. a. What is the maxim...

Q: Amy is a calendar-year taxpayer reporting on the cash basis

Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat the following items for 2018: a. She makes a deductible contribution to an IRA on April 15, 2019. b. S...

Q: Diane is a single taxpayer who qualifies for the earned income credit

Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2018, Diane’s wages are $18,300 and she receives dividend i...

Q: Margaret and David Simmons are married and file a joint income tax

Margaret and David Simmons are married and file a joint income tax return. They have two dependent children, Margo, 5 years old (Social Security number 316-31-4890), and Daniel, who was born during t...

Q: Brian and Kim have a 12-year-old child,

Brian and Kim have a 12-year-old child, Stan. For 2018, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stan’s income on Brian and...