Evan and Eileen Carter are husband and wife and file a joint return for 2018. Both are under 65 years of age. They provide more than half of the support of their daughter, Pamela (age 25), who is a full-time medical student. Pamela receives a $5,000 scholarship covering her tuition at college. They furnish all of the support of Belinda (Evan’s grandmother), who is age 80 and lives in a nursing home. They also support Peggy (age 66), who is a friend of the family and lives with them. How many dependents may the Carters claim?

Marianne is a 43-year-old tax attorney who wants to buy life insurance. Marianne's husband Gaetan, 61, is a retired police lieutenant with a substantial pension benefit that provides him and his family with a comfortable lifestyle. The couple has two children: Penny, who is in high school, and Leonard, who is in university on a full scholarship. Marianne's mother Beatrice lives in a retirement home that Marianne pays for. Which of Marianne's family members will experience the greatest financial loss if Marianne were to die prematurely? Select one correct answer from the list 1 2. Gaetan Penny 3. Leonard 4 Beatrice » 0 0 0 0

Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3301 Pacific Coast Highway, Laguna Beach, CA 92651. Brian is an optometrist who owns his business; Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful one-year-old girl from an orphanage near Shanghai and are in the process of adopting her. The social security numbers of the four current members of their household are 412-34-5670 for Brian, 412-34-5671 for Corrine, 412-34-5672 for Brady, and 412-34-5673 for Hank. Their birth dates are as follows: Brian, 5/20/1976; Corrine, 7/23/1976; Brady, 9/1/2009; and Hank, 10/12/2011. The following are Brian’s income and expense information from his business and Corrine’s W-2 from Orange County. Brian’s optometrist office income and expenses for the current year: Gross income $ 271,355 Cost of goods sold (Beginning inventory $45,000;…

Janet and James purchased their personal residence 15 years ago for $412,500. For the current year, they have an $103,125 first mortgage on their home, on which they paid $5,156 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $144,250. They paid interest on the home equity loan of $14,425 for the year. Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. a. Qualified residence acquisition debt interest   b. Qualified home equity debt interest

Shen and Sondra Xiang are 37 years old and have one daughter, age 5. Shen is the primary earner, making $87,000 per year. Sondra does not currently work. The Xiangs have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Sondra and their daughter in the event of Shen’s death. Shen and Sondra estimate that while their daughter is still living at home, monthly living expenses for Sondra and their child will be about $3,700 (in current dollars). After their daughter leaves for college in 13 years, Sondra will need a monthly income of $3,100 until she retires at age 65. The Xiangs estimate Sondra’s living expenses after 65 will only be $2,700 a month. The life expectancy of a woman Sondra’s age is 87 years, so the Xiang family calculates that Sondra will spend about 22 years in retirement. Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses. Life Insurance…

Kyle (44) and Elise (39) Terry have four children. Kyle works for Lockheed Martin as a flight engineer and Elise is a freelance writer/editor. Their family is covered by a qualified High Deductible Health Insurance Plan. Kyle's gross pay is $120,000 nd Elise's net earnings from self-employment is $75,000. Their children are Jacob(16), Katie(14), Rachael(12), and Luke(10). For the current tax year, Kyle and Elise prepared for retirement. Kyle's plan is a profit sharing plan and Elise utilizes a SEP IRA. Kyle's employer contributes 14% of his gross pay to the profit sharing plan. Kyle pays the health insurance premiums through his employer's cafeteria plan, his portion of the health insurance premiums are $7,000 per year. Kyle also incurred the following expenses during the year: $1,900 in student loan interest, $4,000 contribution to Utah's 529 plan ($1,000 for each child, kyle lives in Georgia); State income taxes of $12,000; property taxes of $4,000; mortgage interest of $10,000; and…

Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full-time stay-at-home mom. Use the easy method to estimate the family's life insurance needs.

es Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $103,000 and qualified business income of $12,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $210,000 and they sold it for $260,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,900 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Required: c. What would their taxable income be if their itemized deductions totaled…

Wade (49) and Colleen (50) are married. They have two children, Jacob (20) and Lucella (15), who both lived with their parents all year. Jacob is not a student, but he has a part-time job. Lucella is still in high school. Wade and Colleen provide more than 50% support for both children. Wade's wages were $27,500; Colleen's wages were $17,900; Jacob's gross income was $5,100; Lucella's was $0.   1, What is Wade's correct and most favorable 2019 filing status? 2. Does Wade meet the qualifications for claiming the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit? Choose the best answer. Wade is eligible to claim the Child Tax Credit/Additional Child Tax Credit.   Wade is eligible to claim the Other Dependent Credit.   Wade is not eligible to claim the Child Tax Credit/Additional Child Tax Credit or the Other Dependent Credit. 3. Wade (49) and Colleen (50) are married. They have two children, Jacob (20) and Lucella (15), who both lived with their parents…

Albert established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $20,000 when the children were five years old. Albert made no further contributions to his children's plans. Thirteen years later, both children have graduated from high school. Kim's fund has accumulated to $45,000, and Jim's has accumulated to $42,000. Kim decides to attend a state university, which will cost $60,000 for four years (tuition, fees, room and board, and books). Jim decides to go to work instead of going to college. During the current year, $7,500 is used from Kim's plan to pay the cost of her first semester in college. Because Jim is not going to college now or in the future, Albert withdraws the $42,000 plan balance and gives it to Jim to start his new life after high school. Question Content Area a.  During the period since the plans were established, should Albert or the twins have been including the annual plan earnings in gross income?…