Question

In: Accounting

During all of 2019, Mr. and Mrs. Clay lived with their four children (all are under...

During all of 2019, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2019. Neither is blind, and both are under age 65. They reported the following tax-related information for the year. Taxable Income is $114,500.

Salary income 145,000

Prize from local radio station 10,500

Medical expenses (no health insurance) 4,000

Real estate taxes 8,200

Alimony paid by Mr. Clay (divorced in 2015) 12,000

State income taxes withheld in 2019 2,800

Federal income tax withholding 7,500

Qualified home mortgage interest (acquisition debt of $300,000) 15,000

Charitable contributions 4,000

What is the couple's Tentative Minimum Tax?

Expert Solution

Here is the calculated Taxe of Mr. & Mrs Clay as per 1040 individual income tax return ($1,425)

Form-1040

Here is the Tentative Minimum Tax in Form-6251 Line-9 . ($3,328)

ekkarill92 answered 1 year ago

4) During all of 2018, Mr. and Mrs. Clay lived with their four children (all are...

4) During all of 2018, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2018. Neither is blind, and both are under age 65. They reported the following tax-related information for the year: (Use the tax rate schedules) Salary income $125,000 Prize from local radio station 1,500 Medical expenses (no health insurance) 4,000 Real estate taxes...

Mr. and Mrs. B have four children. All were seemingly healthy pregnancies, without complications. When the...

Mr. and Mrs. B have four children. All were seemingly healthy pregnancies, without complications. When the last child was tested for PKU shortly after birth (as required by law), the results indicated toxic levels of phenylalanine breakdown products in the blood. Explain how dietary changes can affect the expression of PKU. (See Autosomal Recessive Disorders—Phenylketonuria.) Discuss the cause of the disease and the probable percentages of inheritance of the disease in children the couple might have in the future. (See...

Mr. and Mrs. Brown have never made a taxable gift. They have four children and ten...

Mr. and Mrs. Brown have never made a taxable gift. They have four children and ten grandchildren. Mr. and Mrs. Brown both have wills that leave their entire property to the other when one dies. They figure that there will be no estate taxes when the first spouse dies. What’s wrong with this strategy if they want their kids to enjoy their wealth after they are gone? What other things can you suggest to them to minimize their gift taxes?

Mr. and Mrs. H are married with two dependent children living with them. Their AGI is...

Mr. and Mrs. H are married with two dependent children living with them. Their AGI is $360,000. Assume the taxable year is 2017. Use Appendix 14-A and Appendix 14-B. Using the worksheets, compute the below-the-line deductions that they will report in computing taxable income. a. Assume that itemized deductions total $44,000 (none of which were medical expense, investment interest expense, or casualty, theft, or gambling loss). b.Now assume that itemized deductions total $13,000 (none of which were medical expense, investment...

A) Mr. and Mrs. T have two young children, and file a joint return. They have...

A) Mr. and Mrs. T have two young children, and file a joint return. They have salary income of $67,000, and interest income of $400. Their itemized deductions total $8,750, and their federal income tax withheld was $2,170. Mrs. T received a cash gift of $20,000 from her aunt during the year. Compute their refund or balance due (the year is 2018). Show your calculations. B) Mr. and Mrs. V have three children, and file a joint return. They have...

In 2019, Mr. and Mrs. Underhill sold their home and moved into a senior citizen village....

In 2019, Mr. and Mrs. Underhill sold their home and moved into a senior citizen village. This home had been their principal residence for the past 30 years, and they originally purchased it for $170,000. Mr. and Mrs. Underhill file a joint return. Compute their REALIZED and RECOGNIZED gain or loss on the sale assuming that they sold the house for: 1. $850,000 2. $160,000 3. $330,000 Make sure you calculate both the realized and recognized gain. Additionally, if you...

For 2019: Chin Lee (age 42) is single with three minor children (all under age 16),...

For 2019: Chin Lee (age 42) is single with three minor children (all under age 16), who live with him. Chin has a salary of $80,001, a short-term capital loss of ($2,000), a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. Calculate/Answer the following: a. Chin's optimum filing status b. Chin's adjusted gross income c. Chin's taxable income d. Chin's tax liability before any credits Show all calculations and label each answer.

Mr. and Mrs. Alalami Golden are married and have one pre-school-aged child. During the year, Mrs....

Mr. and Mrs. Alalami Golden are married and have one pre-school-aged child. During the year, Mrs. Alalami is employed and earns $64,000 while Mr. Alalami is a full-time student for the entire year. The amount paid for tuition and fees is $8,700. Required: On a joint income tax return, calculate their child tax credit and the allowed education expenses deduction.

the Jones family household includes Mr. and Mrs. Jones, 4 children, 2 cats, and 3 dogs....

the Jones family household includes Mr. and Mrs. Jones, 4 children, 2 cats, and 3 dogs. Every dat at 6 P.M. there is a Jones family stroll. The rules for a Jones family stroll are: Exactly 5 things (people + dogs + cats) go on each stroll. Each stroll must include at least one parent and at least one pet. There can never be a dog and a cat on the same stroll unless both parents go. (a) How many...

Mr. and Mrs. Dursley of number four, Privet Drive, were proud to say that they were...

Mr. and Mrs. Dursley of number four, Privet Drive, were proud to say that they were perfectly normal, thank you very much. Unfortunately, someone, or something, had left 13very large, very deep, boot-shaped depressions in their front yard. Each depression has a volume of 1 ft3(for a total volume to be filled with 13ft3). The Dursleys plan to angrily purchase 22 kg (total weight) bags of topsoil from a local store to fill the holes. Each bag of topsoil has...