For each situation listed indicate the amount to be included in income for current year. The federal interest rate of 5.5% is in effect. Linda collected $42,000 on a life insurance policy from her husband, Leon's death. The insurance policy was provided by Leon's employer, and the premiums were excluded from Leon's gross income as group term life insurance. The policy face value was $40,000.

Mr. Gilbert is self-employed and makes annual contributions to a SEP plan. Ms. Gilbert's employer doesn't offer any type of qualified retirement plan. Each spouse contributes the maximum $6,000 to a traditional IRA. Required: a. Compute the AGI on their joint return if AGI before an IRA deduction is $144,000. b. Compute the AGI on their joint return if AGI before an IRA deduction is $210,100. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the AGI on their joint return if AGI before an IRA deduction is $210,100. $198,100 AGI

On April 30, Ava, age 42, received a distribution from her qualified plan of $150,000.  She had an adjusted basis in the plan for $500,000 and the fair market value of the account as of April 30 was $625,000.  Calculate the taxable amount of the distribution and any applicable penalty. $30,000 taxable; $3,000 tax penalty $30,000 taxable; $0 tax penalty $120,000 taxable; $12,000 tax penalty $150,000 taxable; $15,000 tax penalty

For calendar year 2023, Giana was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2023. How much of these premiums may Giana deduct as a deduction for AGI? As an itemized deduction? If an amount is zero, enter "0". Self-employed persons can deduct fill in the blank 1 % of their medical insurance premiums as a deduction for AGI in 2023. Thus, Giana may deduct $fill in the blank 2 as a deduction     AGI and she may deduct $fill in the blank 4 as an itemized deduction (subject to the AGI floor).

Please explain every step. Thank you

In 2019, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy’s medical expense deduction.

Chris 45 and Alison  46 are marries  and they will file a joint return . During the year they earned 82500 wages. They also jad investment  income consisting of 200 interest income from a savng account 350 interest  income from a certificate  of deposit held with another bank 250 interest  income  from a us treasury 500 tax exempt  interest  income from municipal bond and 1700 in ordinart dividends from a mutual fund what amout will cris and allison report for taxable interest in their 1040

Aa.63. Ms. Ray is age 46 and single. This year, Mr. Ray's retirement savings included a $2,630 employer contribution to a qualified profit-sharing plan account, and a contribution by Ms. Ray to a traditional IRA. Mr. Ray contributed the maximum allowed. Required: Compute Ms. Ray's IRA deduction if current year income includes $71,320 salary.

At the end of the first pay period of the year, Sofia earned $5,700 of salary. Withholdings from Sofia’s salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $534 of federal income taxes, $194 of medical insurance deductions, and $44 of life insurance deductions. Compute Sofia’s net pay for this first pay period. (Round your intermediate and final answers to 2 decimal places.)

Assume your client, Jenni, age 50, takes a distribution of her Roth IRA assets six tax years after she funded her account. Which of the following distributions will be income tax free and free from the 10% early withdrawal penalty? A) A distribution due to a disability B) A distribution for medical expenses exceeding 7.5% of her adjusted gross income C) Distributions in the form of substantially equal periodic payments to her D) Distributions for health care insurance payments if she becomes unemployed