Question

In: Accounting

Ms. Judy Connor and her spouse, Jeff Connor, have 2019 medical expenses which total $4,330. While...

Ms. Judy Connor and her spouse, Jeff Connor, have 2019 medical expenses which total $4,330. While Ms. Connor has 2019 Net Income For Tax Purposes of $150,000, Jeff’s only income is $360 in savings account interest. They have three children, Justice is 12, has 2019 medical expenses of $4,600 and no Net Income For Tax Purposes. James is 21, has 2019 medical expenses of $8,425 and Net Income For Tax Purposes of $8,250. Julian is 23, has 2019 medical expenses of $120 and Net Income For Tax Purposes of $6,000. Ms. Connor pays all of the medical expenses. Determine Ms. Connor’s medical expense tax credit for 2019.

Solutions

Expert Solution

From January 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year which exceeds 7.5% of the adjusted gross income. One can claim the medical expenses paid for oneself, spouse or a dependent either when services were provided or payment was made. A person can be called dependent if he/she is either a qualifying child or qualifying relative. A qualifying child is your son, daughter, foster child, stepchild, brother, sister, step-brother, step-sister, half brother, half sister or a descendant of any of them. Whose age was under 19 at the end of 2019, who lived with you for more than half of 2019, who did not provide over half of his/her own support for 2019 and who did not file a joint return.On the other hand, a qualifying relative is a person who is your son, daughter, step-child, foster child or a descendant of any of them and who was not a qualifying child and for whom you provide more than half of the support in 2019. You can include medical expenses paid for an individual that would have been dependent except that he/she has a gross income of 4200 dollars or more in 2019 or he/she filed a joint return for 2019 or you or your spouse, if filing jointly, could be claimed as dependent on someone else's 2019 return.

Considering the above, it can be said that Ms. Connor can claim the medical expenses of herself and her spouse Jeff Conor, along with her son Justice who is a qualifying child. However, James and Julian are qualifying relatives but Ms Connor cannot claim the medical expenses in respect of them because their gross income exceed 4200 dollars.


Related Solutions

In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However,...
In January, Ms. NW projects that her employer will withhold $25,000 from her 2019 salary. However, she has income from several other sources and must make quarterly estimated tax payments. Compute the quarterly payments that result in a 2019 safe-harbor estimate assuming that her 2018 AGI was $176,000, and her tax was $47,200. Compute the quarterly payments that result in a 2019 safe-harbor estimate assuming that her 2018 AGI was $139,000, and her tax was $36,800.
Please assume 2020 tax year: 12. Ms. Lincoln paid $14,340 of medical expenses this year that...
Please assume 2020 tax year: 12. 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 Ms. Lincoln doesn’t itemize deductions on her Form 1040. Ms. Lincoln itemizes deductions, her AGI is $64,400, and her marginal tax rate is 24 percent. Ms. Lincoln itemizes deductions, her AGI is $209,200, and her marginal tax rate is 32 percent.
1. Judy is covered by a $200,000 group-term life insurance policy of which her daughter is...
1. Judy is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Judy’s employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is excluded from Judy’s gross income on an annual basis? PLEASE SHOW WORK
QUESTION 49 Carly has two children under 13 and worked full time while her spouse, Michael,...
QUESTION 49 Carly has two children under 13 and worked full time while her spouse, Michael, was attending college for 9 months during the year. Carly incurred $7,000 of child care expenses. In calculating the credit for child care expenses, the applicable percentage would be multiplied by which of the following amounts? a. $6,000 b. $7,000 c. $4,500 d. $3,000 QUESTION 50 John incurred the following expenses during 2019: $1,000 dues at a health club he joined at the suggestion...
If a company decreases the variable expense per unit while increasing the total fixed expenses, the...
If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: shift upward and have a steeper slope. shift downward and have a steeper slope. shift upward and have a flatter slope. shift downward and have a flatter slope.
1. Ms. Wilson comes into the clinic and reports excessive vaginal discharge. While asking her     some...
1. Ms. Wilson comes into the clinic and reports excessive vaginal discharge. While asking her     some initial questions, you learn that she multiple sex partners. What do you anticipate for     her examination? What teaching is important? 2. Mr. Brown is being admitted to the hospital for complications of diabetes. While collecting     initial data, you learn that although he is married, he is no longer sexually active. How do you     respond?
Deborah’s spouse died in 2017. She does not have a qualifying child. Her filing status option...
Deborah’s spouse died in 2017. She does not have a qualifying child. Her filing status option for that year is: * Married filing jointly or married filing separately. Qualifying widow. Single. Head of household
Leona (age 47) incurred the following unreimbursed medical expenses this year: Routine office visits to her...
Leona (age 47) incurred the following unreimbursed medical expenses this year: Routine office visits to her doctor...........................$500 Dental work...........................................................1,000 Emergency room visits..........................................1,760 Disposable contact lenses........................................430 Prescription drugs.....................................................600 If Leona's AGI is $40,000, compute her itemized deduction for medical expenses. (see page 552 in your book) * Leona is 47 years old. $0 $3,290 $2,290 $290 Josh gave a painting to the local art museum in a year when his AGI was $127,000. The painting had a fair market value of...
You are a dual-income, no-kids family. You and your spouse have the following debts (total): mortgage,...
You are a dual-income, no-kids family. You and your spouse have the following debts (total): mortgage, $214,000; auto loan, $24,000; credit card balance, $18,000; other debts, $24,000. Further, you estimate that your funeral will cost $9,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance? Insurance need $
On December 31, 2019, The Bates Company's revenue is $360,000 and expenses total $260,000 before consideration...
On December 31, 2019, The Bates Company's revenue is $360,000 and expenses total $260,000 before consideration of the following: Accrued wages total $14,000; Accrued revenues total $42,000; Depreciation expense is $20,000; Rental revenue of $4,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 35% of income before income taxes. What is Bates' net income after consideration of the above information? Multiple Choice $72,800. $70,200. $100,000. $112,000.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT