Madrid Metro and Married Filing

b. Fill out the Payments, Credits, and Tax section of the 1040EZ form using the following information:

•2015: $325 per adult and $162.50 per child (up to $975 for a family), or 2% of household income above the tax return filing threshold, whichever is greater

If you are single and you are earning more than $25,000 per year including SSDI benefits, a portion of your benefits will be taxable. If you are married and you and your spouse filed jointly, SSA will take into account your combined income. If you and your spouse are making

Section 152(a) provides that for a taxpayer to take a dependency exemption, the potential dependent must satisfy either the qualifying child requirement or the qualifying relative requirement. Section 152(b)(2) indicates that the taxpayer is not permitted a dependency exemption for a married dependent if the married individual files a joint return. Pursuant to section 152(c), the term “qualifying child” refers to an individual who has not furnished over one-half of his or her own support and who has not attained the age of 19 or who has not attained the age of 24, if a full-time student, as of the close of such calendar year. The term “qualifying relative” under section 152(d) includes, but is not limited to, an individual whose gross income is less than the exemption amount and to whom the taxpayer provides over-half of the total individual’s support for the calendar year in which such taxable year begins. Under Reg. Sec. 1.152 (a), support received from the taxpayer is compared to the entire amount of support which the potential dependent received from all sources, including support which the individual supplied himself. Support includes food, shelter, medical and dental care, education, recreation,

The disposable income of each parent, which is not taken from your gross income, but instead takes into account various financial considerations as well.

Answer each of these questions, explaining the applicable rules and possibilities of each. (Points : 50)

$0 deduction because unless there is a significant discussion of business of that particular day then the payment can’t be deductible!

Spouse A and B may only choose from the married filing jointly or married filing separately statuses. Under married filing separately the spouses would start accruing taxes against their income sooner. For example under married filing separately a spouse would only be able to earn $8,925.00 of taxable income before they would be progressed to the next tier of the income tax bracket. Under married filing jointly the spouses could earn $17,850.00 of taxable income before they would be progressed to the next tax bracket. These figures were based on the IRS income tax guidelines for the year 2013. (Phillips Erb). They will qualify for 2

| if maritalStatus = ‘M’ taxRate = MARRIED_RATEif maritalStatus = ‘S’ taxRate = SINGLE_RATEif maritalStatus = ‘D’ taxRate = DIVORCED_RATEif maritalStatus = ‘W’ taxRate = WIDOWED_RATEIf hoursWorked <= 40 grossPay = hoursWorked * hourlyRateElse regularPay = (40 * hourlyRate) overtimePay = ((hoursWorked-40) * (hourlyRate * 1.5)) grossPay = regularPay + overtimePaytaxAmount = grossPay * taxRatenetPay = grossPay - taxAmount

They will qualify for five exemptions, one for each of the dependent children, all under the age of 19 and that they provide over half the support for, and one personal

Next, all you need to do is fill in the amount of federal income tax that was withheld from your paychecks through the year, and add any Earned Income Credits to derive at the total payments, or the total amount of taxes you paid the government that year.

In the year 2016 I inputted an amount of $6400.00 from January through August. From September through December an amount of $2400.00. For a total of $8800.00

(4) Of the allocable amount, how much is deductible and are there any limits on how much she can deduct this year?

Management thinks that there is a 40% chance that the tax position would be sustained if taken to

The foreign earned income exclusion amount is adjusted annually for inflation. For tax year 2015, the maximum foreign earned income exclusion is up to $100,800 single ($201,600 for married) if both work abroad and meet either the bona fide residence test or the physical presence test (IRS). The maximum amount of housing expenses is generally 30% depend upon the location of the qualifying individual’s foreign tax home and the number of qualifying days in the tax year.