Arrow is a full-time exempt employee in Sitka, Alaska, who earns $76,500.00 annually. She is married filling jointly with two dependents under 17 years of age. Her spouse is unemployed, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $150 deducted on a pre-tax basis. She has $100 deducted per pay period for a charitable contribution and has union dues of $95 per pay period. She is paid biweekly. What is her net pay? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Multiple Choice $2,416.00 $2,356.00 $2.366.00 $2,266.00 0

Arrow is a full-time exempt employee in Sitka, Alaska, who earns $76,500.00 annually. She is married filling jointly with two dependents under 17 years of age. Her spouse is unemployed, so her federal income tax is $0. She contributes 4% of her gross pay to her 401(k) and has her health insurance premium of $150 deducted on a pre-tax basis. She has $100 deducted per pay period for a charitable contribution and has union dues of $95 per pay period. She is paid biweekly. What is her net pay? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Multiple Choice $2,416.00 $2,356.00 $2.366.00 $2,266.00 0

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 7MCQ: Malin is a married taxpayer and has three dependent children. Malin's employer offers health...

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Malin is a married taxpayer and has three dependent children. Malin's employer offers health insurance for employees and Malin takes advantage of the benefit for her entire family (her spouse's employer also offers health insurance but they opt out). During the year, Malin paid $ 1,200 toward her family's health insurance premiums through payroll deductions while the employer paid the remaining $ 9,200. Malin's family visited health care professionals numerous times during the year and made total copayments toward medical services of $280. Malin's daughter had knee surgery due to a soccer injury and the insurance company paid the hospital $ 6,700$ directly and reimbursed Malin $400 for her out-of-pocket health care expenses related to the surgery. How much gross income should Malin recognize related to her health insurance? $0 $ 9,200 14,020(9,200+6,7001,200280400) 8,000(9,2001,200) None of the above
Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?
Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Bonnie is married and has one child. She owns Bonnies Rib Joint, which produces a taxable income of approximately 120,000 per year. a. Assume that Bonnies taxable income is 40,000 without considering the income from the rib joint. How much tax will she pay on the 120,000 of income from the rib joint? b. You work for the firm that prepares Bonnies tax return. Bonnie has asked the partner for whom you work to advise her on how she might lower her taxes. The partner has assigned you this task. Draft a memorandum to the partner that contains at least two options Bonnie could use to lower her taxes. For each option, explain the calculations that support the tax savings from your recommendation.
Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. What is the maximum amount that Karen may deduct for contributions to her IRA for 2019? $__________________________ If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 2019? $__________________________