Question

In: Accounting

1.Can Fred claim a credit disabled tax credit if he is a US resident, 60 years...

1.Can Fred claim a credit disabled tax credit if he is a US resident, 60 years old and is not permanently or totally disabled? Why or why not? Can Donna claim an elderly tax credit if she is 70 years old? Why or why not?

2.Calculate Lisa’s income tax (10% tax rate) if she:

Earned $5,000 in wages

Paid $100 for her work uniform

Paid $200 of interest on her home mortgage

Lost her watch ($300 FMV)

Had a $400 adoption tax credit

3.Calculate Anne’s income tax (10% tax rate) if she:

Earned $3,000 in wages

Paid $100 of alimony to her former spouse

Paid $200 of interest on loan from friend

Held up at gun point and her bracelet ($300 FMV) was taken

Had a $200 child tax credit

Solutions

Expert Solution

The following rules are prescribed in IRS who is eligible claim for tax credit for elderly or disabled

  • the threshold limit of age is 65 or older at the end of year of tax credit
  • You retired on permanent and total disability and have taxable disability income.

If both the above criteria is met than the person should meet both the below mentioned condition

  • He is a qualified individual. ( he can be U.S. citizen or resident alien,)
  • Your income isn't more than certain limits.

1.Can Fred claim a credit disabled tax credit if he is a US resident, 60 years old and is not permanently or totally disabled? Why or why not?

Ans

The information on FRED is given as under

  • He is 60 years old
  • He is not permanently or totally disabled

He cannot claim for tax credit for disabled as he less than threshold limit age of 65 years

Can Donna claim an elderly tax credit if she is 70 years old? Why or why not?

Ans

Donna can claim elderly tax credit as the age is above the threshold limit age of 65 and is citizen of USA and assuming the income isn't more than certain limits.

ekkarill92 answered 1 year ago
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