Question

In: Accounting

Facts: Couple is filing a joint tax return. Both are age 72. Both receive a pension...

Facts:

Couple is filing a joint tax return.

Both are age 72.

Both receive a pension that gives them about 20,000 combined a year.

They are also receiving Social Security income of about 20,000 combined a year.

The filer has a part time 1099-MISC earned income as a contractor for a city which paid him 2300. He is claiming 150 dollars in expenses for travel expenses.

They have a disabled adult child in the house who is age 40.

Question:

Will this household be eligible for EITC/Child Tax credit? Why or why not?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

            Phil & Susan, each age 60, are married filing a joint return. They have no...
            Phil & Susan, each age 60, are married filing a joint return. They have no dependents. Susan has wages of $34,000. Phil doesn’t work due to a disability, but he’s a buyer and seller of stocks on the internet. The couple’s stock transactions for the year are detailed below. They also had $2,300 of qualifying dividends. Fill in the last 2 columns in the table below. Security or fund* Date acquired Date sold Cost Sale price Gain or loss...
Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income $70,000 and...
Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income $70,000 and total allowable itemized deductions of $13,000, including $3,100 for state income taxes, in 2017. They received a $900 refund of state income taxes in April 2018. How much of the state income tax refund must be included in their income and in which year do they include it?
Joseph and Maxie Stottlemyre are married and filing a joint tax return. Their taxable incomes for...
Joseph and Maxie Stottlemyre are married and filing a joint tax return. Their taxable incomes for the year were $27,522 (Joseph) and $24,074 (Maxie). Their W-2 forms show that they already have paid $8315in income taxes for the year. Are they correct in assuming that they will receive a tax refund? If so, how much will it be? Otherwise, how much will they still owe? (10) 11. Would Joseph and Maxie have paid more or less tax if they had...
Mikey and Sal, married taxpayers filing a joint return, paid state income tax of $12,000 and...
Mikey and Sal, married taxpayers filing a joint return, paid state income tax of $12,000 and other itemized deductions of $15,000 in 2020. Because the total of their allowable itemized deductions exceeded the standard deduction, they elected to itemize deductions on their 2020 federal income tax return rather than to claim the standard deduction. In May 2021, Mikey and Sal receive a refund of $1,000 for overpaid state income taxes paid in 2020. Under the tax benefit rule, how much...
Bill and Maria are a married couple who file a joint income tax return. They have...
Bill and Maria are a married couple who file a joint income tax return. They have two children, so they claim a total of 4 exemptions ($4,050 for each exemption). In addition, they have legitimate itemized deductions totaling $27,750. Their total income from wages is $200,800. Assume the following tax table is applicable: ​ Married Couples Filing Joint Returns ​ ​ If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on...
Susan and Stan Britton are a married couple who file a joint income tax return, where...
Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $330,000. Do not round intermediate calculation. What is their federal tax liability? Round your answer to the nearest cent. $   What is their marginal tax rate? Round your answer to two decimal places.     % What is their average tax rate? Round your answer to two...
Gary is age 55 and married. He files a joint tax return and is an active...
Gary is age 55 and married. He files a joint tax return and is an active participant in his employer’s 401(k) plan. What is the maximum tax-deductible IRA contribution he can make in 2020 if his AGI is $124,000?
The following information is available for Bob and Brenda Horton, a married couple filing a joint...
The following information is available for Bob and Brenda Horton, a married couple filing a joint return for 2019. Both Bob and Brenda are 32 and have three dependents. Salaries                                                  200,000 Interest income from NYS bonds                 10,000 Interest income from US bonds     3,000 Long term capital gain                                   7,000 Short term capital loss                                  12,000 Deductible IRA contributions                          4,000 Itemized deductions                                   14,000                                                        Withholding of Federal tax                           50,000 Compute their AGI, taxable income, and tax due or refund due.
the following information is available for tom and susan smith, a married couple filing a joint...
the following information is available for tom and susan smith, a married couple filing a joint return, for 2019. tom is 67 and susan is 64. they have one son, sam, who is 27 years old, lived with them all year and had 2,000 of income. they had the following items for 2019: salaries $175,000 city of fresno bond interest income 1,500 interest income from corporate bond 900 rental income (rented the entire year) 35,000 rental expenses (interest, taxes, repairs)...
The following information is available for Bob and Brenda Horton, a married couple filing a joint...
The following information is available for Bob and Brenda Horton, a married couple filing a joint return for 2020. Bob is 61 and Brenda is 60.  They have fully supported their son, Charles age 31 (a US citizen) who lived with Bob and Brenda all of 2020. Bob and Brenda fully supported Charles for all of 2020. Charles only source of income was $3,990 from unemployment. The following information relates to Bob and Brenda for 2020:       Salary – Bob                                               $80,000       Salary –...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT