Questions from Taxation

Q: Blake and Valerie Meyer (both age 30) are married with

Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). On the basis of the following information, compute the Meyers’ 2018 federal income tax (including any AMT) on their...

Q: Mr. and Mrs. Nester had the following items of financial

Mr. and Mrs. Nester had the following items of financial support this year. Social Security benefits…………………………………………………..$26,890 Dividends and interest………………………………………………………78,600 Pension from Mr. Nes...

Q: Ms. Cross didn’t request an extension of time to file her

Ms. Cross didn’t request an extension of time to file her 2017 income tax return and didn’t mail the completed return to the IRS until August 8, 2018. She enclosed a check for $2,380, the correct bala...

Q: Mrs. Cora Yank (age 42) is divorced and has

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10- year-old son, William. From the following information, compute Mrs. Yank’s 2018 federal income tax (including any AMT) and the amoun...

Q: Ms. Lincoln paid $14,340 of medical expenses this

Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that: a. Ms. Lincoln doesn’t itemize de...

Q: Mr. and Mrs. Compton paid $9,280 of

Mr. and Mrs. Compton paid $9,280 of medical expenses that were not reimbursed by their private insurance provider. Compute the after-tax cost of these expenses assuming that: a. The Comptons itemize d...

Q: Mr. and Mrs. Moss have major medical and dental insurance

Mr. and Mrs. Moss have major medical and dental insurance provided by Mrs. Moss’s employer. This year, they incurred the following unreimbursed expenses. Routine office visits to doctors and dentists...

Q: Mrs. Fugate failed to include $28,000 lottery winnings

Mrs. Fugate failed to include $28,000 lottery winnings on her 2017 Form 1040. The only gross income she reported was her $78,000 salary. She filed her return on January 19, 2018. a. What is the last d...

Q: The revenue agent who audited Mr. and Mrs. Arnold’s Form

The revenue agent who audited Mr. and Mrs. Arnold’s Form 1040 concluded that the couple failed to report $16,900 of taxable income for the year. As a result, the IRS assessed a $4,225 deficiency of th...

Q: Perry Bell paid $6,438 of state and local property

Perry Bell paid $6,438 of state and local property and income tax this year. Compute the after-tax cost of these payments assuming: a. Perry doesn’t itemize deductions on his Form 1040. b. Perry itemi...