Question

In: Accounting

30.) Determine the amount of the standard deduction allowed for 2018 in the following independent situations....

30.) Determine the amount of the standard deduction allowed for 2018 in the following independent situations. In each case, assume that the taxpayer is claimed as another persons dependent.

a.) Curtis age 18 has income as follows:$700 interest from a certificate of deposit and $12,200 from repairing cars.

b.) Mattie, age 18 has income as follows:$600 cash dividends from a stock investment and $4,700 from handling a paper route.

c.) Jason age 16, has income as follows:$675 interest on a bank savings account and $800 for painting a neighbors fence.

d.) Ayla age 15 has income as follows:$400 cash dividens from a stock investment and $500 from grooming pets.

e.) Sarah age 67 and a widow has income as follows:$500 from a bank savings account and 3,200 from babysitting.

please answer all questions and show how you got the answer

Solutions

Expert Solution

Standard Deduction Explanation
a. Curtis, age 18, reports income as follows: $700 interest from a certificate of deposit and $6,100 from repairing cars. $6,350.00 The standard deduction for Curtis who can be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or $350 + 6100, but limited to the $6,350 standard deduction for a single taxpayer.
b. Mattie, age 18, records income as follows: $600 cash dividends from a stock investment and $4,700 from handling a paper route. $5,050.00 The standard deduction for Mattie who can be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or $350 + 4700 = $5050
c. Mel, age 16, incurs income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence. $1,150.00 The standard deduction for Mel who can be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or $350 + $800 = $1150
d. Lucy, age 15, reports income as follows: $400 cash dividends from a stock investment and $500 from grooming pets. $1,050.00 The standard deduction for Lucy who can be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or $350 + $500 = $850
e. Sarah, age 67 and a widow, incurs income as follows: $500 from a bank savings account and $3,200 from babysitting. $5,100.00 The standard deduction for Sarah who can be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or $350 + $3200 = $3550 plus $1550 the additional standard deduction allowed as she is 67 older than 65.
The standard deduction for a taxpayer who can be claimed as a dependent by another taxpayer cannot exceed the greater of (a) $1,050 or (b) $350 + the dependent's earned income

Related Solutions

Determine the amount of the standard deduction allowed for 2018 in the following independent situations. In...
Determine the amount of the standard deduction allowed for 2018 in the following independent situations. In each case, assume the taxpayer is dependent of another taxpayer. a. Mason, aged 18, has income as follows: $1,900 from a paper route and $10,800 from repairing computers. $ b. Emma, aged 17, has income as follows: $950 in cash dividends from a stock investment, $5,100 from providing dance lessons, and $1,700 from babysitting. $ c. Samuel, aged 13, has income as follows: $100...
In each of the following independent situations, determine the dividends received deduction for 2018. Assume that...
In each of the following independent situations, determine the dividends received deduction for 2018. Assume that Oak Corporation owns 25%, Elm owns 15% and Mahogany owns 80% of the stock in the corporations paying the dividends. Oak Corporation Elm Corporation Mahogany Corporation Income from operations $650,000 $900,000 $825,000 Expenses from operations (525,000) (850,000) (800,000) Qualifying dividends 100,000 100,000 100,000 a. The dividends received deduction for Oak Corporation is $ b. The dividends received deduction for Elm Corporation is $ c....
In each of the following independent situations, determine the dividends received deduction. Assume that none of...
In each of the following independent situations, determine the dividends received deduction. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying the dividends. Almond Corporation Blond Corporation Cherry Corporation Income from operations $700,000 $800,000 $900,000 Expenses from operations (600,000) (850,000) (910,000) Qualifying dividends 100,000 100,000 100,000 Click here to view the dividend received deduction table. a. The dividends received deduction for Almond Corporation is $. b. The dividends received deduction for...
n each of the following independent situations, determine the dividends received deduction for the calendar year...
n each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that Seafoam Corporation owns 40%, Oceanview owns 25% and Roughwaters owns 5% of the stock in the corporations paying the dividends. Seafoam Corporation Oceanview Corporation Roughwaters Corporation Income from operations $240,000 $480,000 $700,000 Expenses from operations (265,000) (485,000) (680,000) Qualifying dividends 100,000 100,000 100,000 Click here to view the dividend received deduction ownership percentages and corresponding deduction percentage. a. The dividends...
Determine the amount of the standard deduction for each of the following taxpayers for tax year...
Determine the amount of the standard deduction for each of the following taxpayers for tax year 2019: Christina, who is single. Adrian and Carol, who are filing a joint return. Their son is blind. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents. Rodolfo, who is over 65 and is single. Bernard, who is a...
Determine the amount of the standard deduction for each of the following taxpayers for tax year...
Determine the amount of the standard deduction for each of the following taxpayers for tax year 2017: Christina, who is single. Adrian and Carol, who are filing a joint return. Their son is blind. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents. Rodolfo, who is over 65 and is single. Bernard, who is a...
determine the amount of the standard deduction for each of the following taxpayers for tax year...
determine the amount of the standard deduction for each of the following taxpayers for tax year 2017 a. Christina, who is single. b. A drain and Carol, who are filling a joint return. their son is blind. c. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. d. Karen, who earned $1100 working a part-time job. she can be claimed as a dependent by her parents. e. Rodolfo, who is over65 and is...
In each of the following independent situations, determine the amount of the child and dependent care...
In each of the following independent situations, determine the amount of the child and dependent care tax credit. (Assume that both taxpayers are employed and the year is 2017). Brad and Bonnie are married and file a joint return, with earned income of $40,000 and $14,000, respectively. Their combined AGI is $52,000. They have two children, ages 10 and 12, and employ a live-in nanny at an annual cost of $9,000. Assume the same facts as in Part a, except...
Determine whether the following taxpayers are eligible for the QBI deduction and the deduction amount (if...
Determine whether the following taxpayers are eligible for the QBI deduction and the deduction amount (if any). Cathy is married and files a joint return with her spouse. Cathy operates a small family restaurant as a sole proprietor. She pays wages of $70,000 and the QBI from the restaurant is $100,000. Cathy’s spouse has wages of $250,000 and their joint taxable income is $364,000. Is Cathy eligible for QBI deduction? Answer yes or no If eligible, how much is the...
For each of the three independent situations below determine the amount of the annual lease payments....
For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance lease in which annual lease payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price that is sufficiently lower than the expected fair value that the exercise of the option appears reasonably certain. (FV of $1, PV of $1, FVA of $1,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT