Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax exempt bonds. The Collins enrolled in health insurance for all of 2020 through their state exchange but did not elect to have the credit paid in advance. The 2020 Form 1095-A that the Collins received from the exchange lists the following information: Annual premiums $9,800 Annual premium for the designated silver plan in the state $10,800 Federal Poverty Line for a family of four $25,750 Compute the Collins' premium tax credit for 2020.

Kathy is a single taxpayer. She had the following unreimbursed medical expenses for 2020:   $5,000 of medical expenses related to an auto accident. She expects the other driver's auto insurance to reimburse her $3,000 of the expenses in early 2021. $1,000 prepayment to an orthodontist for braces she will receive in early 2021. The orthodontist has a strict policy that a prepayment is required before braces are given to a patient. $600 of her portion of health insurance premiums not covered by her employer. Due to being permanently handicapped after the accident, she had to install a wheelchair ramp and support bars in her home. Total costs were $4,000. The value of her home increased $2,000, and the improvements have a useful life of 15 years. Assuming she itemizes and her AGI was $40,000, what is her medical expense deduction for 2020? Assuming she does not itemize in 2021 and, as expected, received the reimbursement of $3,000 for the other driver's insurance company, how much AGI…

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6777. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1112. Bill lives with Ashley, and she fully supports him. Bill spent 2020 traveling in Europe and was not a college student. He had gross income of $4,655 in 2020. Bill paid $4,000 of lodging expenses that Ashley reimbursed after they were fully documented. Ashley paid the $4,000 to Bill using a check from her sole proprietorship. That amount is not included in the items listed below. Ashley had substantial health problems during 2020, and many of her expenses were not reimbursed by her health insurance. Ashley owns Panda Enterprises LLC (98-7654321), a data processing service that she reports as a sole proprietorship. Her business is located at 456 Hill Street, Wayne, OH 43466. The business activity code is 514210. Her 2020 Form 1040, Schedule C for Panda Enterprises shows revenues of $315,000,…

Review the following scenario. Use the information provided to answer questions about the taxpayer’s 2020 return.Evonne Williams (32) is filing as a single taxpayer. Evonne was the beneficiary of one of her great-grandmother’s traditional IRAs. She passed away during the year, and Evonne took a $2,000 total distribution from the IRA. She then used the money to pay down her credit card debt.Evonne did not qualify for any COVID-19 related exceptions for IRA distributions. As far as she knows, all of her great-grandmother’s contributions to the account were deductible.Evonne’s only other income during the year was $44,000 in wages. She will claim the standard deduction. Question 1. Evonne received the following Form 1099-R reporting the IRA distribution. The form shows a code "4" in box 7, indicating that the distribution is due to death. When Evonne files her 2020 return, how much of the distribution must she include in her total income? $0 $200 $1,800 $2,000