Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 36P
a.
To determine
Identify the persons that are eligible to claim Person W and Person C as a dependent under the multiple support agreement.
b.
To determine
Explain whether Person W and Person C can be claimed as a dependents by the same person for the year 2018 and 2019.
c.
To determine
Identify the person who can claim the medical expense.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Naimish's niece and nephew were born in 2019. He decides to open an RESP for them. What type of
RESP is this? Question 11 options: A. One joint subscriber (with their mother), family RESP B. Two sole
subscriber, family RESPS (one for each child) C. Two sole subscriber, individual RESPs (one for each child
) D. One sole subscriber, family RESP
In which of the following situations will the divorced custodial parent be entitled to the dependency exemption for the child?
a, The noncustodial parent provides $1,500 of support for the child and the custodial parent provides $1,200.
b, The custodial and noncustodial parent both provide $1,500 of support for the child.
c, The custodial parent provides $1,500 of support for the child and the noncustodial parent provides $1,200.
d, All of the above.
Martha incurred medical and dental expenses in 2020 for herself, her husband, Terry
and her six year-old daughter, Sophia as follows:
Medical/Dental Cost Net Income
Martha
$3,500
$132,000
Terry (spouse)
2,200
70,000
Sophia (child under 18)
800
According to the T1 Guide, either spouse can claim the medical expenses. Which
spouse should claim the medical expense credit to receive the maximum amount?
Type either Martha or Terry in the space provided.
What is the maximum federal medical expense tax credit that can be claimed in
2020?
Do not add commas or dollar signs to your answers. Round to the nearest whole number.
Chapter 3 Solutions
Individual Income Taxes
Ch. 3 - Prob. 1DQCh. 3 - Which of the following items are inclusions in...Ch. 3 - Which of the following items are exclusions from...Ch. 3 - Prob. 4DQCh. 3 - In choosing between taking the standard deduction...Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Caden and Lily are divorced on March 3, 2018. For...Ch. 3 - Prob. 10DQ
Ch. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - During the year, Brandi had the following...Ch. 3 - Sam and Abby are dependents of their parents, and...Ch. 3 - Compute the 2019 standard deduction for the...Ch. 3 - Paul and Sonja, who are married, had itemized...Ch. 3 - Compute the 2019 tax liability and the marginal...Ch. 3 - In 2019, Simon, age 12, has interest income of...Ch. 3 - Prob. 25CECh. 3 - During the year, Tamara had capital transactions...Ch. 3 - Compute the taxable income for 2019 in each of the...Ch. 3 - Compute the taxable income for 2019 for Emily on...Ch. 3 - Compute the taxable income for 2019 for Aiden on...Ch. 3 - Prob. 30PCh. 3 - Analyze each of the characteristics in considering...Ch. 3 - Prob. 32PCh. 3 - Prob. 33PCh. 3 - Prob. 34PCh. 3 - Prob. 35PCh. 3 - Prob. 36PCh. 3 - Taylor, age 18, is claimed as a dependent by her...Ch. 3 - LO.4, 9 Walter and Nancy provide 60% of the...Ch. 3 - Prob. 39PCh. 3 - LO.1, 2, 3, 4, 5, 6 Morgan (age 45) is single and...Ch. 3 - Prob. 41PCh. 3 - LO.5, 6, 9 Roy and Brandi are engaged and plan to...Ch. 3 - In each of the following independent situations,...Ch. 3 - Prob. 44PCh. 3 - Nadia died in 2018 and is survived by her husband,...Ch. 3 - Paige, age 17, is a dependent of her parents....Ch. 3 - Prob. 47PCh. 3 - LO.8 During 2019, Inez (a single taxpayer) had the...Ch. 3 - During 2019, Inez (a single taxpayer) had the...Ch. 3 - Prob. 50PCh. 3 - Lance H. and Wanda B. Dean are married and live at...Ch. 3 - Prob. 52CPCh. 3 - Kathy and Brett Ouray married in 2001. They began...Ch. 3 - Prob. 2RPCh. 3 - Prob. 5RPCh. 3 - Prob. 1CPACh. 3 - Jane is 20 years old and is a sophomore at Lake...Ch. 3 - Prob. 3CPACh. 3 - Jeff and Rhonda are married and have two children,...Ch. 3 - Prob. 5CPACh. 3 - Bill and Anne Chambers are married and file a...Ch. 3 - Prob. 7CPACh. 3 - Heather is single and has one son, Rhett, who is...Ch. 3 - Prob. 10CPACh. 3 - Prob. 11CPA
Knowledge Booster
Similar questions
- LO.2 During 2019, Susan incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Beth qualifies as Susans dependent, and Ed would also qualify except that he receives 7,400 of taxable retirement benefits from his former employer. Beths psychiatrist recommended Red River Academy because of its small classes and specialized psychiatric treatment program that is needed to treat Beths illness. Ed, who is a paraplegic and diabetic, entered Heartland in October. Heartland offers the type of care that he requires. Upon the recommendation of a physician, Susan has an air filtration system installed in her personal residence. She suffers from severe allergies. In connection with this equipment, Susan incurs and pays the following amounts during the year: The system has an estimated useful life of 10 years. The appraisal was to determine the value of Susans residence with and without the system. The appraisal states that the system increased the value of Susans residence by 2,200. Ignoring the AGI floor, what is the total of Susans expenses that qualifies for the medical expense deduction?arrow_forwardVirginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000arrow_forwardAlton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2018, they received Social Security benefits of 10,000. Both Alton and Clair are covered by Medicare. Altons Social Security number is 111-11-1119, and Clairs is 123-45-6786. They reside at 210 College Drive, Columbia, SC 29201. Alton, who retired on January 1, 2018, receives benefits from a qualified pension plan of 2,750 a month for life. His total contributions to the plan (none of which were deductible) were 168,250. In January 2018, he received a bonus of 2,000 from his former employer for service performed in 2017. No income taxes were withheld on this bonus by his former employer (Amalgamated Industries, Inc.; EIN 12-3456789; 114 Main Street, Columbia, SC 29201). Although Amalgamated Industries, Inc., accrued the bonus in 2017, it was not paid until 2018. Clair, who retired on December 31, 2017, started receiving benefits of 1,400 a month on January 1, 2018. Her contributions to the qualified pension plan (none of which were deductible) were 74,100. On September 27, 2018, Alton and Clair received a pro rata 10% stock dividend on 600 shares of stock they owned. They had bought the stock on March 5, 2011, for 20 a share. On December 16, 2018, they sold the 60 dividend shares for 55 a share. On October 10, 2018, Clair sold the car she had used in commuting to and from work for 17,000. She had paid 31,000 for the car in 2012. On July 14, 2010, Alton and Clair received a gift of 1,000 shares of stock from their son, Thomas. Thomass basis in the stock was 35 a share (fair market value at the date of gift was 25). No gift tax was paid on the transfer. Alton and Clair sold the stock on October 8, 2018, for 24 a share. On May 1, 2018, Clairs mother died, and Clair inherited her personal residence. In February 2018, her mother had paid the property taxes for 2018 of 2,100. The residence had a fair market value of 235,000 and an adjusted basis to the mother of 160,000 on the date of her death. Clair listed the house with a real estate agent, who estimated it was worth 240,000 as of December 31, 2018. Clair received rent income of 6,000 on a beach house she inherited three years ago from her uncle Charles. She had rented the property for one week during the July 4 holiday and one week during the Thanksgiving holiday. Charless adjusted basis in the beach house was 150,000, and its fair market value on the date of his death was 240,000. Clair and Alton used the beach house for personal purposes for 56 days during the year. Expenses associated with the house were 3,700 for utilities, maintenance, and repairs; 2,200 for property taxes; and 800 for insurance. There are no mortgages on the property. Clair and Alton paid estimated Federal income tax of 2,000 and had itemized deductions of 6,800 (excluding any itemized deductions associated with the beach house). If they have overpaid their Federal income tax, they want the amount refunded. Both Clair and Alton want 3 to go to the Presidential Election Campaign Fund. Compute their net tax payable or refund due for 2018, using the appropriate tax rate schedule (not the Tax Tables). If you use tax forms for your computations, you will need at a minimum Form 1040 and Schedule D. Suggested software: ProConnect Tax Online.arrow_forward
- Sammy and Monica, both age 67, incur and pay medical expenses in excess of insurance reimbursements during the year as follows. Sammy and Monicas 2019 AGI is 130,000. They file a joint return. Chuck and Carter are Sammy and Monicas dependents. a. What is Sammy and Monicas medical expense deduction for regular income-tax purposes? b. What is Sammy and Monica's AMT adjustment for medical expenses?arrow_forwardWhich of the following is a deduction for AGI? a. Charitable contributions. b. Alimony paid for a divorce finalized in 2015. c. Tax preparation fees. d. Mortgage interest paid on your primary residence.arrow_forwardFor 2019, the maximum amount of expenses that qualify for the child and dependent care credit is the same for three dependents as it is for two dependents?arrow_forward
- Which of the following statements concerning Social Security retirement benefits is (are) correct? If an individual receives retirement benefits based on his spouse’s earnings record, his benefits will cease upon his divorce from her, unless he is 62 years of age or older and he was married to that spouse for at least 10 years. Widows and widowers will continue to receive survivors benefits upon remarriage of the widow or widower if 60 years of age or older. a. 1 only. b. 2 only. c. Both 1 and 2. d. Neither 1 nor 2.arrow_forward1. Charlene has self-only coverage in a qualifying high-deductible health insurance plan. She is 47 years old and wishes to contribute the maximum amount to her HSA. How much is she allowed to contribute and deduct in 2019? a. $4,600 b. $1,300 c. $1,000 d. $3,500 e. $3,450 2 Martha and Rob, a married couple, under 50 years of age, have adjusted gross income on their 2019 joint income tax return of $45,000, before considering any IRA deduction. Martha and Rob have no earned income. What is the amount of Martha's maximum deductible IRA contribution? a. $2,700 b. $5,500 c. $0 d. $3,500 e. $11,000 3. Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA? In your computations, carry out any division to two decimal places. a. $5,500 b. $6,000 c. $3,850 d. $5,000 e. Some other amount 4. Marge has a Roth IRA held more than 5 years to which she has contributed…arrow_forwardTim and Martha paid $9,100 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,900 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $57,100 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: What amount of child and dependent care credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $38,900 that was earned entirely by Martha?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT