In 2019, Simon, age 12, has interest income of $4,900 and no earned income. He has no investment expenses. Determine Simon’s net unearned income and total tax liability.

Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return andexpects her taxes to be the same for 2020. Which of the following statements is correct?Select one:a. Juanita will not be required to pay estimated tax payments for 2020.b. Juanita will not be subject to self-employment tax.c. Juanita should take out a loan to pay her 2020 taxes when she files the return.d. Juanita should make estimated tax payments to avoid an underpayment penalty.

John Leslie lives with his wife and 21 year old blind son, Keith, who qualifies for the disability tax credit. Keith has no income of his own. During 2020, John paid medical expenses of $16,240 for Keith. None of these expenses involve attendant care. John’s Taxable Income for 2020 was $100,000. Determine the total amount of tax credits related to Keith that will be available to John.

Tim, a self-employed taxpayer, did not have all the information he needed to timely file his 2020 tax return by May 17, 2021. Although he requested an automatic extension, he did not include a payment when he filed the extension. He then filed his return ten days later, on May 27, 2021, reporting a $950 balance due. How much must Max pay in failure-to-file and failure-to-pay penalties?    No failure-to-file penalty or failure-to-pay penalty will apply.  His failure-to-file penalty is $0, but he has a failure-to-pay penalty of 0.5% of his unpaid tax.  His failure-to-file penalty is 5% of his unpaid tax. He also has a failure-to-pay penalty of 0.5%, for an overall total of 5.5%.  He has a $435 failure-to-file penalty plus an additional penalty of 0.5%, applied to his unpaid tax.

In 2020, Sally is single and has business income totaling $ 100,000 from a business classified as a specialized service business. This business did not pay any wages or have any qualified assets. Sally also has $ 10,000 in dividend income from a Real Estate Investment trust, and $ 55,000 in qualified dividends from Microsoft. Sally’s 2020 taxable income (before any QBI deductions is $ 145,000. Calculate Sally’s deduction for qualified business income. a. $ 0 b. $ 2,000 c. $ 18,000 d. $ 20,000 e. $ 22,000

Nicholas died on December 27, 2020. His wife, Jessica, has not remarried. On January 31, 2021, Jessica received a check from Party Central Inc. and a letter explaining that the check represents a final payment for contract work Nicholas performed for them in 2020. What is the correct and most favorable method of reporting this income?    As ordinary income on Jessica's 2021 individual tax return.  As income paid to Nicholas's estate, reported on Form 1041.  On the couple's jointly filed 2020 return. If this was not included in the originally filed return, Jessica should file an amended return to include this income.  On a 2021 final tax return for Nicholas that Jessica files on his behalf.

Mazik, age 17, is a dependent of his parents.Mazik earned wages of $12,500 and had no investment income. What isMazik's standard deduction amount for 2020? What is the amount of Taxpayer Corp.'s 2023 NOL deduction?

In 2019, Michael has net short-term capital losses of $1,500, a net long-tern capital loss of $27,000, and other ordinary taxable income of $45,000. a. calculate the amount of michael deduction for capital losses on his tax return for 2019. b. Calculate the amount and nature of his capital loss carry forward. Long-tern capital carryforward. Short-term capital loss carryforward.

Keith has a 2020 tax liability of $2,250 before taking into account his American Opportunity tax credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents' return, and his American Opportunity tax credit was not subject to phase-out. What is the amount of his American Opportunity tax credit allowed? a.$2,600 b.$0 c.$2,150 d.$2,250 e.$4,000

Enzo's 2020 federal income tax liability is $10,000. Enzo is entitled to a nonrefundable tax credit of $12,000 for 2020. Enzo did not make any prepayments towards his 2020 federal income tax liability, and he did not have any withholdings. What is the amount of tax refund that Enzo will receive when he files his 2020 federal income tax return?