Tony and Nancy are married. Both are under age 55. For all of 2022, Tony has self-only coverage under a hig deductible health plan (HDHP) with a $2,000 annual deductible. He has no other health coverage. Nancy ha non-HDHP family coverage for herself and the couple's two dependent children. Tony is not covered by Nancy non-HDHP. Because he has no health coverage beyond his own HDHP, Tony is eligible to contribute up to wh amount to a health savings account (HSA) for the 2022 tax year? A. $1,400 B. $3,650 C. $7,050 D. $7,300
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Tony and Nancy are married. Both are under age 55. For all of 2022, Tony has self-only coverage under a hig deductible health plan (HDHP) with a $2,000 annual deductible. He has no other health coverage. Nancy ha non-HDHP family coverage for herself and the couple's two dependent children. Tony is not covered by Nancy non-HDHP. Because he has no health coverage beyond his own HDHP, Tony is eligible to contribute up to wh amount to a health savings account (HSA) for the 2022 tax year?
A. $1,400 B. $3,650 C. $7,050 D. $7,300
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- Caden and Lily are divorced on March 3, 2018. For financial reasons, however, Lily continues to live in Cadens apartment and receives her support from him. Caden does not claim Lily as a dependent on his 2018 Federal income tax return but does so on his 2019 return. Explain.John Benson, age 40, is single. His Social Security number is 111-11-1111, and he resides at 150 Highway 51, Tangipahoa, LA 70465. John has a 5-year-old child, Kendra, who lives with her mother, Katy. As a result of his divorce in 2016, John pays alimony of 6,000 per year to Katy and child support of 12,000. The 12,000 of child support covers 65% of Katys costs of rearing Kendra. Kendras Social Security number is 123-45-6789, and Katys is 123-45-6788. Johns mother, Sally, lived with him until her death in early September 2019. He incurred and paid medical expenses for her of 15,588 and other support payments of 11,000. Sallys only sources of income were 5,500 of interest income on certificates of deposit and 5,600 of Social Security benefits, which she spent on her medical expenses and on maintenance of Johns household. Sallys Social Security number was 123-45-6787. John is employed by the Highway Department of the State of Louisiana in an executive position. His salary is 95,000. The appropriate amounts of Social Security tax and Medicare tax were withheld. In addition, 9,500 was withheld for Federal income taxes and 4,000 was withheld for state income taxes. In addition to his salary, Johns employer provides him with the following fringe benefits. Group term life insurance with a maturity value of 95,000; the cost of the premiums for the employer was 295. Group health insurance plan; Johns employer paid premiums of 5,800 for his coverage. The plan paid 2,600 for Johns medical expenses during the year. Upon the death of his aunt Josie in December 2018, John, her only recognized heir, inherited the following assets. Three months prior to her death, Josie gave John a mountain cabin. Her adjusted basis for the mountain cabin was 120,000, and the fair market value was 195,000. No gift taxes were paid. During the year, John reported the following transactions. On February 1, 2019, he sold for 45,000 Microsoft stock that he inherited from his father four years ago. His fathers adjusted basis was 49,000, and the fair market value at the date of the fathers death was 41,000. The car John inherited from Josie was destroyed in a wreck on October 1, 2019. He had loaned the car to Katy to use for a two-week period while the engine in her car was being replaced. Fortunately, neither Katy nor Kendra was injured. John received insurance proceeds of 16,000, the fair market value of the car on October 1, 2019. On December 28, 2019, John sold the 300 acres of land to his brother, James, for its fair market value of 160,000. James planned on using the land for his dairy farm. Other sources of income for John are: Potential itemized deductions for John, in addition to items already mentioned, are: Part 1Tax Computation Compute Johns net tax payable or refund due for 2019. Part 2Tax Planning Assume that rather than selling the land to James, John is considering leasing it to him for 12,000 annually with the lease beginning on October 1, 2019. James would prepay the lease payments through December 31, 2019. Thereafter, he would make monthly lease payments at the beginning of each month. What effect would this have on Johns 2019 tax liability? What potential problem might John encounter? Write a letter to John in which you advise him of the tax consequences of leasing versus selling. Also prepare a memo addressing these issues for the tax files.Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin collecting his Social Security benefits at that time. His monthly benefits will increase if he defers his starting date for the benefits. He has asked you to estimate how much his income tax will increase as a result of collecting Social Security. Charles and his wife Bernice B., file a joint return, have no other dependents, and claim the standard deduction. Their only income other than the Social Security benefits are: The Social Security benefits for the year would be 12,000. a. Complete Worksheet 1, Figuring Your Taxable Benefits, included in IRS Publication 915 to determine the taxable portion of this couples taxable Social Security benefits (the publication includes a blank worksheet). b. What is the taxable portion of the 12,000 in Social Security benefits?
- Kiara (31) is married. However, she and her two children, Xavier (3) and Shandra (5), moved back in with her parents in 2019, after she separated from her husband. She will not be filing a joint return with her husband. They are all U.S. citizens and have valid social security numbers. Kiara's divorce had not been finalized by the end of 2020, but her husband did not live with her during the year. The children stayed with him 150 nights and the rest of the nights with Kiara. He did not pay any of her household expenses. Since the separation, Kiara and her children have lived in the finished basement apartment that her parents used to rent to local college students. Kiara pays more than half the cost of maintaining the apartment, and neither of the children provided any of their own support. Kiara’s wages and AGI were $43,250; Xavier’s gross income was $0; Shandra’s was $0. Kiara had no other income including foreign income. Kiara will not be releasing any dependent exemptions she may…Stan and Sylvia are each 22 years old, and not married. Sylvia is 8+ months pregnant with their unborn child, which is due in October of 2021. During 2021, Stan made $19,900 of wage income, and Sylvia made $49,000. Neither has given anything to charity, and Sylvia has all the medical costs covered by insurance. There are no other items to consider. They are contemplating two options: Option A: Sylvia has the baby, they do not get married, do not live together, and Sylvia lives with and takes full care of the baby. Option B: They get married, live together, and jointly take care of the baby. From a purely tax perspective, which option would you recommend for Sylvia and Stan? You must report empirical evidence from the facts here to support your conclusions. Please show formulasIngrid (43) and Daniel (48) are married but have lived apart since March 15, 2020. They have no divorce decree or separate maintenance agreement. They are both U.S. citizens and have valid social security numbers. Ingrid will not file a joint return with Daniel. Ethan (16), their son, went with Ingrid when she moved out and has lived with her since. Ingrid paid all the household expenses after they moved out. She did sign Form 8332, Release/Revocation of Claim to Exemption for Child by Custodial Parent so Daniel could claim Ethan. Together, Ingrid and Daniel provided more than 50% of Ethan's support. Ethan provided 5% of his own support. Daniel's wages were $27,000; Ingrid's were $29,850; Ethan's gross income was $1,525. Ingrid had no foreign income or investment income. 1.What is Ingrid's correct and most favorable 2020 filing status? Single. Married filing jointly. Married filing separately. Head of household. Qualifying widow(er). 2.Is Ingrid eligible to claim the Child Tax Credit…
- Jeff (52) is unmarried. Jeff's wife, Michelle, died on May 30, 2019. For 2019, he filed a joint return. He has not remarried. Jeff's daughter, Hailey (19), is single and lived with him for five months in 2020. They are both U.S. citizens and have valid social security numbers. Jeff does not provide more than 50% of Hailey's support. Hailey is not a student. Jeff's 2020 income consisted of $39,000 in wages and $1,200 in dividends. Hailey's wages were $10,533. Jeff had no other income, including any foreign income. 1.What is Jeff's correct and most favorable 2020 filing status? Single. Married filing jointly. Married filing separately. 2.What is Hailey's dependency status for Jeff? She is not a dependent of Jeff. Qualifying Relative Dependent. Qualifying Child Dependent. 3.Is Jeff eligible to claim the Child Tax Credit (CTC) and Additional Child Tax Credit (if the CTC is limited), or the Other Dependent Credit for any potential dependent? Choose the best response. Jeff is eligible…Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2020 through their state exchange but did not elect to have the credit paid in advance. The 2020 Form 1095-A that the Collins received from the exchange lists the following information: Annual premiums $9,800 Annual premium for the designated silver plan in the state $10,800 Federal Poverty Line for a family of four $25,750 Compute the Collins' premium tax credit for 2020.John supports Kevin, his cousin, who lived with him throughout 2019. John also supports three other individuals who do not live with him: Donna, who is John's mother Melissa, who John's stepsister Morris, who is John's cousin Assume that Donna, Melissa, Morris, and Kevin each earn less than $4,200. How many dependents can John claim? 1 0000 34
- Maribeth and Rick are married and file jointly. Maribeth runs her own bakery and makes a net profit of $75,000 which she reports on her Schedule C. They pay $900 monthly for Maribeth’s health insurance coverage. Rick was unemployed until he found a job with the railroad in June. On August 1, 2022, Rick became eligible to participate in the company’s health insurance plan but declined coverage, preferring to stay with Maribeth’s plan. How much can Maribeth and Rick deduct in self-employed health insurance premiums for 2022?Wendy (single) paid after-tax premiums for a long-term disability plan through her employer. After an illness, she retired in November 2022 at age 62. She elected to delay collecting social security. The disability policy paid $2,800 per month. IF she had no other income for 2023. What would her taxable income be?