Rafael and Lucy, married taxpayers, each contribute $2,900 to their respective § 401(k) plans offered through their employers. The AGIreported on the couple's joint return is $42,000. Determine their credit for retirement plan contributions (the Saver's Credit).Click here to access the "Saver's" Credit Rate and AGI Thresholds Table.As a result, they may claim a credit for their retirement plan contributions of $

Part 2: Explanation:Step 1: Determine the applicable credit rate and AGI threshold:According to the…

Answered: Rafael and Lucy, married taxpayers,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,600. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,500. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $2,000. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,300. Retirement Savings Contributions Credit
Tim and Martha paid $8,100 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $2,900 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $56,600 of AGI earned equally. Use Child and Dependent Care Credit AGI schedule. Required: a. What amount of child and dependent care credit can they claim on their Form 1040? b. How would your answer differ (if at all) if the couple had AGI of $36,900 that was earned entirely by Martha? a. Child and dependent care tax credit b. Child and dependent care tax credit Amounts
Kathy is 48 years of age and self-employed. During 2018 she reported $522,000 of revenues and $104,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k)? Multiple Choice ___ 455,000. ___ $61,000. ___ $99,309. ___ $105,305.
Mr. Gilbert is self-employed and makes annual contributions to a Keogh plan. Mrs. Gilbert's employer doesn't offer any type of qualified retirement plan. Each spouse contributes $3,100 to a traditional IRA. Required: Compute the AGI on their joint return if AGI before an IRA deduction is $154,000. Compute the AGI on their joint return if AGI before an IRA deduction is $204,600
Suppose you are28 and married. You and your spouse file for income taxes jointly. You are in the 25% tax bracket. You are considering a few personal investment issues. If your employer provides the following matching schedule on your contribution to the 401 (k): 100% matching for the first 3% of your salary and then 50% matching for the next 2% of your salary. You plan to work for the current employer for 3-7 years before you start your own business. Which one of the following seems to be the best investment strategy? a.Invest all your income inside your regular taxable investment account. b.First, contribute 5% of your salary to your 401 (k), then invest the rest in your IRAs and Roth IRA account, finally invest the remaining money, if any, in your regular taxable investment account. c.Contribute 5% of your salary to your 401 (k), and then invest all the rest money in your regular taxable investment account. d.First, fully fund your IRA and Roth IRA account, then fund your401 (k),…
Godo
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
Grady received $8,880 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Note: Leave no answer blank. Enter zero if applicable. Required: a. Grady files single and reports salary of $13,800 and interest income of $420. b. Grady files single and reports salary of $23,870 and interest income of $770. c. Grady files married joint and reports salary of $78,400 and interest income of $670. d. Grady files married joint and reports salary of $44,000 and interest income of $870. e. Grady files married separate and reports salary of $23,870 and interest income of $770. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Grady files single and reports salary of $13,800 and interest income of $420. Amount to be included in gross income
Subject - account Please help me. Thankyou .
The Chungs are married with one dependent child. They report the following information for 2022: Schedule C net profit $ 66,650 Interest income from certificate of deposit (CD) 2,100 Self-employment tax on Schedule C net profit 9,418 Dividend eligible for 15% rate 12,000 Lila Chung's salary from Brants Company 75,000 Dependent care credit 500 Itemized deductions 27,000 Required: Compute AGI, taxable income, and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2022. Use Individual Tax Rate Schedules and Standard Deduction Table. Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount.
Gadubhi
Mr. and Mrs. Wilson are married (MFJ) with one dependent child. They report the following information for 2020: Schedule C net profit Interest income from certificate of deposit (CD) Self-employment tax on Schedule C net profit Dividend eligible for 15% rate Mrs. Wilson's salary from Brants Company Dependent care credit Itemized deductions S 66,650 2,100 9,418 12,000 75,000 500 27,000 Required: Compute AGI, taxable income, and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2020. Use Individual Tax Rate Schedules and Standard Deduction Table. (Do not round intermediate computations. Round your final answers to the nearest whole dollar amount.)

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