john and maria support their 21-year-old son, bill. the son earned $12,200 last year working in a part-time job. bill went to college part time in the spring semester of the current year. to complete his degree, bill started school full time in the fall. the fall semester at bill’s college runs from august 20 to december 20. can john and maria claim bill as a dependent on the current year’s tax return, even if bill earns this level of gross income? assume any dependency test not mentioned has been met. in answering this case, use an online tax service with only the internal revenue code database selected. state your keywords and which online tax service you used to arrive at your answer.

Kim earned $30,000 from Pfizer before she was laid off. She then collected $7,000 of unemployment benefits. Finally, Kim received a $12,500 scholarship for tuition so she could return to college to earn a microbiology degree. How much does Kim need to report as income on her tax return?

Donald, a wealthy banker, has a 24-year-old son, Junior, that has struggled to keep a job. In 2018, Junior generated wage income of $17,000. Junior is not a dependent of Donald and Junior’s 2018 tax liability is $500. Donald is considering gifting Junior some funds if he agrees to contribute the gift to an IRA in 2018. What is the maximum amount Donald can give that will not exceed Junior’s maximum Saver’s Credit in 2018? $_______________________

Peter Marwick, an accountant and accrual basis taxpayer, performed accounting services in Year One for Ellie Vader. Peter gave Ellie a bill for $30,000 in Year One. Ellie paid Peter $5,000 in Year One, but Ellie disputes that she owes the other $25,000 because she thinks his work is shoddy. Ellie agreed to put $25,000 in escrow until she and Peter could resolve their legal dispute over Peter's fees. In Year Three after litigation, the dispute is resolved in Peter's favor and he gets the money out of escrow. How much income does Peter have and when?   Question 9 options:   Peter has $30,000 income in Year 1 because he is on the accrual method.   Peter has no income in Year 1 because there is a contested liability.   Ellie has $25,000 in cancellation of indebtedness income in Year 1.   Peter has $5,000 income in Year 1 and $25,000 in Year 3 under the Claim of Right Doctrine.

Erin is the landlord of a single-family home, which she leased to Carlos in February 2022. Prior to moving in, Carlos paid $1,000 for the first month's rent and an additional $1,000 for the last month's rent (for a total of $2,000 advance rent). He then paid $10,000 in rent during the remainder of the tax year. What amount does Erin include in gross rental income for this property in 2022?

Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Mortgage interest Property taxes $7,925 2,760 Insurance 2,950 TULE Repairs & maintenance 1,875 Utilities 4,400 16,875 Depreciation Ce During the year, Alexa rented out the condo for 100 days and received $23,800 in gross rental receipts. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $120,000. Alexa has no sources of passive income. (Leave no answer blank. Enter zero if applicable.) What effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property. AGI 1.01 increases by decreases by no effect

Mr. Esposito, a petroleum engineer, earns an $84,500 annual salary, while Mrs. Esposito, a homemaker, has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple’s future tax rate will increase to 28 percent. If Mrs. Esposito decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple’s after-tax disposable income? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $41,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $41,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 6 percent on her investments. Required: What is the after-tax cost if Isabel pays the $41,000 bill in December?

Sam and Margaret are 62 and 59 respectively. They are married, lived together all year, but prefer to file taxes separately.  Both work and each have a traditional IRA.  Sam is mostly retired but Margaret works full-time.  In 2022, Sam earned $4,500 in wages from working at Walmart as a Greeter.  He also received $29,000 in annuity income.  Margaret earned $65,000 in wages.  What is the maximum Sam can contribute to his IRA?

Mrs. Esposito, a petroleum engineer, earns an $60,500 annual salary, while Mr. Esposito has no earned income. Under current law, the couple pays 20 percent in state and federal income tax. Because of recent tax law changes, the couple's future tax rate will increase to 28 percent. If Mrs. Esposito decides to take a part-time job because of the rate increase, how much income must she earn to maintain the couple's after-tax disposable income? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Answer is complete but not entirely correct. $ 67,222 X Additional income before tax