Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was...

Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was $100,000 in 2018. They pay $700 per month for health insurance coverage. Bea was a homemaker. In early February, she started working for a company, and both of them became eligible to participate in her employer’s health plan on March 1, 2018. However, they didn’t want to switch insurance providers, so Bea declined her employer’s coverage. How much is their health insurance deduction for self-employed in 2018? Please explain why. (2 pts)

Expert Solution

Self-employed health insurance deduction is not available for the months the taxpayer is eligible to participate in her spouse employer's health plan. Thus, deduction is not available for the months from March through december.

Deduction is available for the months of january and february as in these months the taxpayer is not eligible to participate in her spouse's employer's health plan.

Deduction then = $700*2 = $1,400

Deduction is not limited as net profit from self-employment is more than the amount of deduction. Deduction remains at $1,400.

ekkarill92 answered 2 years ago

Terrell, a self-employed architect who reported a net profit on his Schedule C, paid for his...

Terrell, a self-employed architect who reported a net profit on his Schedule C, paid for his health insurance out of his own pocket. He was not eligible to be covered under any other insurance plan until November 1, when he became eligible for, but opted out of, his spouse's employer-sponsored plan. His total premiums paid for the year were $4,600. How much can Terrell deduct as an adjustment to income on his tax return? $767 $2,300 $3,833 $4,600

Ben and Molly are married and will file jointly. Ben earns $300,000 from his single member...

Ben and Molly are married and will file jointly. Ben earns $300,000 from his single member LLC (a law firm). He reports his business as a sole proprietorship. Wages paid by the law firm amount to $40,000; the law firm owns no significant property. Molly is employed as a tax manager by a local CPA firm. Their modified taxable income is $375,000 (this is also their taxable income before the deduction for qualified business income). What is their tentative QBI...

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for...

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for the year is $154,000. What is her self-employment tax liability and additional Medicare tax liability for 2018? (Round your intermediate calculations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for...

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for the year is $170,000. What is her self-employment tax liability and additional Medicare tax liability for 2018? (Round your intermediate calculations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) Self-employment tax liability- Additional medicare tax liability-

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have...

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have two sons. Their sons are age 10 and 14. Stacie and Ryan’s wages in total for the year was $133,000. Their employers withheld $18,000 in tax from their wages. In addition to the above, the following occurred the tax year: They moved several states away because of career relocation for Ryan. Their unreimbursed moving costs were $10,000. Stacie and Ryan pay $3,500 of the...

Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in...

Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in the 37 percent tax bracket. Early in the year, Jane hired Ben as a paralegal and paid him a $33,000 salary. Compute the employer payroll tax on Ben's salary. In addition to the employer payroll tax, Jane paid $400 unemployment tax on Ben's salary. The salary and tax expense reduced Jane's net earnings from self employment, thereby saving $962 in self-employment tax. Compute Jane's...

Dwight and Tammy Young, a married couple who will file jointly, are both teachers. In 2017...

Dwight and Tammy Young, a married couple who will file jointly, are both teachers. In 2017 Dwight had receipts totaling $356.44 in qualifying expenses for his classroom. Tammy had receipts totaling $254.89. The maximum amount of the educator expenses deduction that they will claim on page 1 of their joint Form 1040A is ____ $250 $356 $500 $611 For taxpayers who file married filing jointly, the phaseout of the student loan interest deduction starts with an MAGI of _______ $65,000...

Gabe and Dana are married and file jointly. For 2019, Gabe earned $150,000 and Dana earned...

Gabe and Dana are married and file jointly. For 2019, Gabe earned $150,000 and Dana earned $20,000 working part time as a party planner. They have two young children, a 4-year old son, Mike, and a 6-year old daughter, Chrissy. In order to work, they paid the following for day care to have their children watched and cared for: Best Beginning Day Care $4,000 Bay Child Care & Housekeeping 2,000 Mrs. Goetz (Dana's mother) 1,000 How much was their child...

Sam and Alex are married and file jointly. Throughout the year, they received dividend income from...

Sam and Alex are married and file jointly. Throughout the year, they received dividend income from two stocks. Stock XYZ paid out a non-qualified dividend (based on timing of ownership relative to the ex-dividend date) of $5,500. Stock ABC instead paid out $3,800 as a qualified dividend. The couple’s only other income during the year was $200,000 in salaries in total. But, they are not considered high income taxpayers. (Assume the tax year is 2020). a. What was the additional...

Dave and Sally Tufts, both age 35, are married with two children and file a joint...

Dave and Sally Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit, and the mortgage is not over $750,000. From the following information, compute their tax owed or refund due for 2020. Dave's Salary = $50,000 Federal income tax withheld = 4,000 Sally's Salary= 42,000 Federal income tax withheld = 5,000 Andy's contribution to an IRA (assume IRA is deductible for AGI)= 2,000 Dividends...

Question

Dave and Bea are married and file jointly. Dave is self-employed, and his net profit was...

Solutions

Expert Solution

Related Solutions

Terrell, a self-employed architect who reported a net profit on his Schedule C, paid for his...

Ben and Molly are married and will file jointly. Ben earns $300,000 from his single member...

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for...

Alice is single and self-employed in 2018. Her net business profit on her Schedule C for...

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have...

Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in...

Dwight and Tammy Young, a married couple who will file jointly, are both teachers. In 2017...

Gabe and Dana are married and file jointly. For 2019, Gabe earned $150,000 and Dana earned...

Sam and Alex are married and file jointly. Throughout the year, they received dividend income from...

Dave and Sally Tufts, both age 35, are married with two children and file a joint...