Questions from Individual Taxation

Q: Are taxpayers required to include all realized income in gross income?

Are taxpayers required to include all realized income in gross income? Explain.

Q: Why are some deductions called “above the line” deductions and

Why are some deductions called “above the line” deductions and others called “below the line” deductions? What is the “line”?

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

Eva received $60,000 in compensation payments from JAZZ Corp. during 2018. 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: Trey has two dependents, his two daughters, ages 14 and

Trey has two dependents, his two daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters in each of th...

Q: Julie paid a day care center to watch her two-year

Julie paid a day care center to watch her two-year-old son this year while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie cl...

Q: In 2018, Elaine paid $2,800 of tuition and

In 2018, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maxim...

Q: In 2018, Laureen is currently single. She paid $2

In 2018, Laureen is currently single. She paid $2,800 of qualified tuition and related expenses for each of her twin daughters Sheri and Meri to attend State University as freshmen ($2,800 each for a...

Q: In 2018, Amanda and Jaxon Stuart have a daughter who is

In 2018, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for...

Q: For the following taxpayers determine if they are required to file a

For the following taxpayers determine if they are required to file a tax return in 2018. a. Ricko, single taxpayer, with gross income of $15,000. b. Fantasia, head of household, with gross income of...

Q: Indicate the amount (if any) that Josh can deduct as

Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations and explain your solution. a) Josh borrowed $50,000 from the Firs...