Questions from Federal Taxation

Q: Which of the following statements is true regarding the taxation of Social

Which of the following statements is true regarding the taxation of Social Security benefits? a. 85% is the maximum amount of taxable Social Security benefits. b. 50% is the maximum amount of taxable...

Q: Jordan Johnson is single and has adjusted gross income of $50

Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows: What amount may Jordan claim as itemized deductions on her current-year i...

Q: Phillis and Trey are married and file a joint tax return.

Phillis and Trey are married and file a joint tax return. For 2018, they have $4,800 of nonbusiness capital gains, $2,300 of nonbusiness capital losses, $500 of interest income, and no itemized deduct...

Q: Emily, who is single, sustains an NOL of $7

Emily, who is single, sustains an NOL of $7,800 in 2018. The loss is carried forward to 2019. For 2019, Emily's income tax information before taking into account the 2018 NOL is as fo11ows: How much...

Q: On May 9, 2018, Glenna purchases 500 shares of Ignaz

On May 9, 2018, Glenna purchases 500 shares of Ignaz Company stock for $7,500. On June 30, 2018, she writes a call option on the stock, giving the grantee the right to buy the stock for $9,000 during...

Q: Lara uses the standard mi1eage method for determining auto expenses. During

Lara uses the standard mi1eage method for determining auto expenses. During 2018, she used her car as follows: 9,000 miles for business, 2,000 miles for personal use, 2,500 miles for a move to a new j...

Q: Samuel and Annamaria are married, file a joint return, and

Samuel and Annamaria are married, file a joint return, and have three qualifying children. In 2018, they earn wages of $34,000 and no other income Determine the amount of their earned income credit fo...

Q: Derek, a cash basis, unmarried taxpayer, had $610

Derek, a cash basis, unmarried taxpayer, had $610 of state income tax withheld during 2018. Also in 2018, Derek paid $50 that was due when he filed his 2017 state income tax return and made estimated...

Q: Compute the 2018 AMT exemption for the following taxpayers. a

Compute the 2018 AMT exemption for the following taxpayers. a. Bristol, who is single, reports AMTI of $650,000. b. Marley and Naila are married and file a joint tax return. Their AMTI is $1,528,000....

Q: Ava and her husband, Leo, file a joint return and

Ava and her husband, Leo, file a joint return and are in the 24% tax bracket in 2018. Ava's employer offers a child and dependent care reimbursement plan that allows up to $5,000 of qualifying expense...