Matthew is 45 years old and made $80,000 in wages in 2018. He is single and...

Matthew is 45 years old and made $80,000 in wages in 2018. He is single and pays all the cost of keeping up his home. Matthew’s daughter, Barbara, lived with Matthew all year. Barbara’s son, Henry, was born in April 2018.Henry lived in Matthew’s home since birth. Barbara is 18, single, and had $4,100 in wages in 2018. Barbara is not required to file a tax return. Matthew provides more than half of the support for both Barbara and Henry What is Matthew’s filing status: (Explain your answer) a. Single. b. Married jointly c. Head of household. d. Qualifying widow(er) with dependent child. Who can Matthew claim as his dependents? (Explain your answer) a. No one b. Barbara Only c. Henry Only d. Both Barbara and Henry

Expert Solution

You can file as head of household if:

You are single or unmarried.
You paid more than half the cost of keeping up a home.
You had a qualifying child or relative who lived with you in the home for more than half the year.

As below requirements are met Barbara is considered as Qualifying Child.

The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
The child must be under age 19 at the end of the year and younger than you
The child must have lived with you for more than half of the year.
The child must not have provided more than half of his or her own support for the year.
The child must not be filing a joint return for the year

Filing Status of Mathew is Head of Household.

If gross income is $4,150 or more then they were not considered as dependent.Barbara income is $4100. So she can be considered as dependent.Henry stayed for 8 months with Mathew.

Mathew provided more than half of the total support for Henry. So Henry can be considered as Qualifying Relative.

A Person can be claimed as dependent only if person is Qualifying Child or Qualifying Relative.

So in above case both Barbara and Henry can be claimed as dependents.

jeff jeffy answered 2 years ago

Note: This problem is for the 2018 tax year. Devon Bishop, age 45, is single. He...

Note: This problem is for the 2018 tax year. Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon does not want $3 to go to the Presidential Election Campaign Fund. Devon's wife, Ariane, passed away in 2014. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45-6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting...

David is 59 years old and he is a retired police officer. He is a single...

David is 59 years old and he is a retired police officer. He is a single dad, living with his 14 years old son, Nicholas. David supports Nicholas everything and he claims Nicholas as a dependent. Calculate standard deduction of David

Bobby is single with no dependents. he is 70 years old and is employed by Theta...

Bobby is single with no dependents. he is 70 years old and is employed by Theta Corporation. in 2018, theta transfered him. he submits the following information to you for tax year 2018. compute the gross income, adjusted gross income, taxable income, and income tax. salary 75,000 interest on us govt bonds 5,000 interest on airport municipal bonds 10,000 short term capital loss on sale of stock (8,000) life insurance from death of uncle 500,000 inheritance from uncle 1,000,000 theta...

Bill is 30 years old man earning $80,000 per year. He expects to work till age...

Bill is 30 years old man earning $80,000 per year. He expects to work till age 65. He desires to have retirement income equal to 80% of pre-retirement income. He plans on 25 years of retirement life. He plans to spend extra $15,000 for vacation during year 70 and leave $25,000 for charity at the end. Assume interest rate is 6%. How much should he save per year during his working years to achieve his plan? If interest rate decreases,...

Mr. W is 66 years old and single. His income for 2018 consisted of the following....

Mr. W is 66 years old and single. His income for 2018 consisted of the following. Taxable pension $10000, Taxable interest $2000, Taxable dividendes $5000, Social security payments $5000, Tax-Exempt interest #7000 He did not have any adjustments to income. What amount of W's Social Security benefits is taxable?

US Tax Question Chuck is single and retired at 65 years old in march of 2018,...

US Tax Question Chuck is single and retired at 65 years old in march of 2018, for the year of 2018 he received the following sources of income: Salary 14000 interest income 2000 divident income 1000 tax exempt income 1000 social security benefits 5000 net rental income 6000 What is Chucks modified adjusted gross income? what amaount if any, of his social security benefits must he include in his 2018 gross income? what is Chucks taxable income for 2018?

Michael is single and 35 years old. He is a participant in his employer’s sponsored retirement...

Michael is single and 35 years old. He is a participant in his employer’s sponsored retirement plan. How much can Michael contribute to a Roth IRA in 2019 in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) a. Michael’s AGI before the IRA contribution deduction is $55,000. Michael contributed $3,200 to a traditional IRA. b. Michael’s AGI is $85,000 before any IRA contributions. c. Michael’s AGI is $129,000 before any IRA contributions. A. Contribution...

Matthew Flaws is a single taxpayer and lives at 5670 Sierra Drive, Honolulu, HI 96822. He...

Matthew Flaws is a single taxpayer and lives at 5670 Sierra Drive, Honolulu, HI 96822. He has income from a job as a marketing representative, interest income, dividend income, and stock investments. Some of his investments are in a mutual fund. His social security number is 412-34-5670. For the tax year 2017, Matthew had the following income information: Wages $ 118,000 Social security tax withholding 7,316 Medicare tax withholding 1,711 Federal income tax withholding 17,350 State income tax withholding 3,600...

You would like to retire in 45 years. You expect that you will need $80,000 of...

You would like to retire in 45 years. You expect that you will need $80,000 of today’s purchasing power every year during retirement, with the first withdrawal coming in exactly 45 years. You expect to make 30 annual withdrawals from your retirement account. Annual inflation is expected to be 2%, and you can invest your funds at a 9% nominal interest rate. (a) What will the nominal value of your first withdrawal be? (b) How much will you need in...

Today is 1 August 2018. Jimmy is 30 years old today and he is considering purchasing...

Today is 1 August 2018. Jimmy is 30 years old today and he is considering purchasing 5,000 units of XYZ shares today (XYZ’s current share price is $20). Jimmy will use his own savings to cover 20% of the purchase cost (i.e., $20,000) and he is planning to borrow the remaining 80% of the purchase cost (i.e., $80,000) using a 5-year personal loan (it starts from 1 August 2018) from MQU Bank. Jimmy now has two loan package to choose...

Question