Question

In: Accounting

Lisa and Collin are married. Lisa works as an engineer and earns a salary of $116,000....

Lisa and Collin are married. Lisa works as an engineer and earns a salary of $116,000. Collin works at a beauty salon and reported wages of $45,000. Lisa received $500 of interest from corporate bonds and $250 of interest from a municipal bond. Lisa acquired these bonds prior to her marriage to Collin. Collin's father passed away on April 14. He inherited cash of $50,000 and his baseball card collection, valued at $2,000. As beneficiary of his father's life insurance policy, Collin also received $150,000. The couple spent a weekend in Atlantic City in November and came home with gambling winnings of $1,200. Collin was injured in an accident at the salon. He was unable to work for a month, but during this time he received $5,000 from disability insurance he purchased several years ago. Collin also received $2,000 in worker's compensation, and $1,500 damages for the emotional trauma he suffered from the accident. They will file married filing jointly.

How much must they include in gross income for each of the following items:

a: Amount of salary and wages included in gross income

b: Amount of interest income included in gross income

c: Amount of inheritance and life insurance included in gross income

d: Amount of gambling winnings included in gross income

e: Amount of disability insurance, worker's compensation, and damages from the accident included in gross income

Solutions

Expert Solution

Part A

Amount of salary and wages included in gross income=116000+45000=161000

Part B

Amount of interest income included in gross income = $500

Part C

Amount of inheritance and life insurance included in gross income = 0

Part D

Amount of gambling winnings included in gross income =1200

Part E

Amount of disability insurance, worker's compensation, and damages from the accident included in gross income= 0

Municipal interest, inheritance and life insurance, disability pay, workman's compensation and damages are not included in the gross income.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Lisa earns $65,000 per year. She is married and claims three allowances. Assume that her employer...
Lisa earns $65,000 per year. She is married and claims three allowances. Assume that her employer uses wage bracket tables method. Use withholding allowance, wage bracket table and IRS Publication 15. a.If she is paid weekly, what is her withholding per paycheck? b.If she is paid monthly, what is her withholding per paycheck? c.If she is paid biweekly, what is her withholding per paycheck? d.If she is paid semimonthly, what is her withholding per paycheck?
Jordan Hubert works for ABC all year and earns a monlty salary of $12,800. Thre is...
Jordan Hubert works for ABC all year and earns a monlty salary of $12,800. Thre is no overtime pay. Jordans income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Jordan elects to contribute 1% monthly to united way. ABC also deducts $175 montly for co-payment of the health insurance premium. As of september 30 , Jordan had 115,200 of cumulative earnings For all payroll calculations, use the following tax rates and round amounts to the...
Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid...
Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid on a bi-weekly basis. The company’s benefit package includes group term life insurance coverage of two times annual salary; the group term life insurance premium rate is $0.74 per $1,000.00 of coverage. Helen receives a taxable car allowance of $25.00 every pay for using her own car to go to client appointments. Her federal and provincial TD1 claim codes are 3. Helen will not...
Mr. E, a petroleum engineer, earns an $84,500 annual salary, while Mrs. E, a homemaker, has...
Mr. E, a petroleum engineer, earns an $84,500 annual salary, while Mrs. E, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple’s future tax rate will increase to 28 percent. If Mrs. E decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple’s after-tax disposable income? (Round your intermediate calculations...
Brett and Lisa file taxes under the married filing jointly status. Lisa is a sales manager...
Brett and Lisa file taxes under the married filing jointly status. Lisa is a sales manager for an auto parts company and Brett takes care of their 3 children. In 2018, Lisa receives a promotion associated with a move to a new division located over 500 miles from their existing home. The cost to move their household items is $8,700. Lisa's employer reimburses her for $3,000 of those costs and also pays $2,100 for airfare for the entire family to...
Ann, 49, and Amos 51, are married and both work. Ann earns $57,500 and Amos earns...
Ann, 49, and Amos 51, are married and both work. Ann earns $57,500 and Amos earns $60,500. They have annual investment income of $2,500. Their children are grown and out of the house. The couple have saved a total of $300,000 in 401k accounts and $50,000 total in traditional IRA accounts. Their investment income terminates at age 64. They plan to retire at age 65. Their expenses, including deferred retirement contributions, taxes, and household expenses total $102,000 annually. They plan...
Ann, 49, and Amos 51, are married and both work. Ann earns $57,500 and Amos earns...
Ann, 49, and Amos 51, are married and both work. Ann earns $57,500 and Amos earns $60,500. They have annual investment income of $2,500. Their children are grown and out of the house. The couple have saved a total of $300,000 in 401k accounts and $50,000 total in traditional IRA accounts. Their investment income terminates at age 64. They plan to retire at age 65. Their expenses, including deferred retirement contributions, taxes, and household expenses total $102,000 annually. They plan...
in 2019 Lisa and Fred a married couple had taxable income of $312,000 if they were...
in 2019 Lisa and Fred a married couple had taxable income of $312,000 if they were to file separate tax returns Lisa would have reported taxable income of 129000 and Fred would have reported taxable income of 183000 what is the couple's marriage penalty or benefit?
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were...
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $200,000 and Fred would have reported taxable income of $100,000. A- What is the couple’s marriage penalty or benefit? (Enter a penalty as a positive and a benefit as a negative) n 2019, Jasmine and Thomas, a married couple, have taxable income of $145,000. If they were to file separate tax returns,...
Bob and Lisa are both married, working adults. They both plan for retirement and consider the...
Bob and Lisa are both married, working adults. They both plan for retirement and consider the $2,000 annual contribution a must. First, consider Lisa’s savings. She began working at age 20 and began making an annual contribution of $2,000 at the first of the year beginning with her first year. She makes 13 contributions. She worked until she was 32 and then left full time work to have children and be a stay at home mom. She left her IRA...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT