Tax liability calculation, Taxation

Assignment Help:

Tax Liability Calculation
Morgan (age 45) is single and provides more than 50% of the support of Rosalyn (a family friend), Flo (a niece, age 18), and Jerold (a nephew, age 18). Both Rosalyn and Flo live with Morgan, but Jerold (a citizen of France) lives in Canada. Morgan earns a $95,000 salary, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used only for vacations. She has $8,200 in itemized deductions.
The personal exemption amount for 2013 is $3,900. Click here to access the standard deduction table to use if required.
a. Who qualifies as a dependent of Morgan for the dependency exemption?
b. Morgan's taxable income is $ _________
c. Using the Tax Rate Schedules, tax liability for Morgan is $________ for 2013. (Do not round intermediate tax computation but if required, your final answer to the nearest whole dollar).
Unearned Income of Child under Age 19
Taylor, age 18, is claimed as a dependent by her parents. For 2013, she records the following income: $4,000 wages from a summer job, $1,800 interest from a money market account, and $2,000 interest from City of Boston bonds. If an amount is zero, enter "0".
a. Taylor's standard deduction is $_________
b. Taylor's personal exemption is $_________
c. Taylor's taxable income is $________
d.Compute Taylor's "net unearned income" for the purpose of the kiddie tax. $________
e.Assume that Taylor's tax rate is 10% and her parents' tax rate is 28%. If Taylor's parents file a joint return and have taxable income of $130,000, then Taylor's tax is $________


Related Discussions:- Tax liability calculation

Compute gross income from merchandise sales, 1. Ben lost his job when his e...

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

What reasons would a government introduce a tax, Question 1: "The legit...

Question 1: "The legitimate object of government is to do for a community of people whatever they need to have done, but cannot do at all, or cannot so well do, for themselves

Australia taxation law, Janet (taxpayer) residing in Australia is named as ...

Janet (taxpayer) residing in Australia is named as the sole beneficiary of a property (1.85 hectares) with a large homestead as a result of the death of a relative on 7/10/2010.

GST, I WOULD LIKE TO KNOW ABOUT GST. FROM WHERE IT HAVE COME AND HOW IT WOR...

I WOULD LIKE TO KNOW ABOUT GST. FROM WHERE IT HAVE COME AND HOW IT WORKS. ALSO INFORM ME WEATHER IT IS APPLICABLE IN INDIA OR NOT.

Assignment , I have the whole case and this is the question (Canadian Taxa...

I have the whole case and this is the question (Canadian Taxation) Compute Net Income, Taxable Income and Net Federal Tax Payable for 2012 for Sandra, Steven, Annabelle and Ronnie

Deadweight loss, Suppose there is a negative externality associated with th...

Suppose there is a negative externality associated with the production of aluminum due to the pollution it creates. Is the market quantity of aluminum efficient? Is there a deadwe

Liquadiation, Realty Corporation owns a rental building (its only asset) wi...

Realty Corporation owns a rental building (its only asset) with a gross fair market value of $1,000,000, subject to a nonrecourse mortgage of $400,000. Realty Corporation''s adjust

Tds, Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds. The co...

Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of its FMV and $10 per hundred weight. The car is

Share returns, The tab-delimited text file C223C323_A1_S1_2013_Q1_Q2.txt co...

The tab-delimited text file C223C323_A1_S1_2013_Q1_Q2.txt contains data on the share price of FirstGroup plc (FirstGroup), the public transport company, the share price of Cairn En

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd