Tax Update for Individuals and Small Business (2024 Filing Season)

An Individual Retirement Account (IRA) is an account in which the saver does not pay income tax on the amount deposited but is not allowed to withdraw the money until retirement. (The saver pays income tax at that point, but his or her tax bracket is much lower then.)Marlene Silva wishes to have an IRA that will be worth $100,000 when she retires at age 65. (Round your answers to the nearest cent.) (a) How much must she deposit at age 34 at  8 3/8% compounded daily? $ (b) If, at age 65, she arranges for the monthly interest to be sent to her, how much will she receive each thirty-day month?

Which one(s) is/are true for RRSP? (There might be more than one answer).   Question 1 options:     The Home Buyers' Plan (HBP) is a tax-free withdrawal from an RRSP account for persons who are deemed to be first-time home buyers.  An eligible person is permitted to take an withdraw up to $35,000.00 from their RRSPs to purchase or construct a home for themselves.     The LLP student must be enrolled on a full-time basis at the educational institution. Students can not be enrolled on a part-time basis under any conditions.      Any contribution made to an RRSP within 89 days prior to the HBP request does not qualify to be part of the HBP program.     Up to $5000 net per year, over four years, up to a maximum of $20,000 net, can be redeemed per spouse for purposes of the LLP.

If the Potinsky household spends $49,600 annually on all living expenses and long-term debt, calculate the amount recommend for an emergency fund.  How might household circumstances, e.g., wage earners in the household, available credit, and type and stability of employment, affect this decision? 1. The emergency fund amount would range from $? to $?.  Round to the nearest dollar and enter the range from lowest to highest. 2. The (higher/lower) the number of wage earners in the household, the (more/less) credit available, and the (higher/lower) the stability of employment; the higher the emergency funds should be.

15.Which of the following are deductions from AGI? (select all that apply). One-half self-employment tax Self-employed health insurance Post-tax health insurance Donations to a school Supplies for a taxpayer's K-12 classroom Moving expenses for military members on Permanent Change of Station orders Student loan interest Mortgage interest

Net pay refers to the amount of take-home pay after taxes and other deductions (healthcare, social security, retirement, etc.).  For the purposes of this project we will assume everyone is an unmarried individual with no children.  We will assume your net salary is simply your gross salary($123,031) minus your taxes (that you will calculate using the table below) and all of your gross salary will be considered taxable income.  Find your net pay. Show all calculations, including descriptions if necessary.  Be sure to use the equation editor and label your final solution.  Round your solution to the nearest dollar.

Need these answered asap! 1) Taking home used office printers when the company purchases new equipment would increase your gross income. True or False 2) A taxpayer filing Married Jointly has an AGI of $120,250. They have one qualifying child under age 17. How much could they potentially recieev in a child tax credit? Phase out begins at $400,000. 500, 1400, 0, 600, or 2000? 3) You pay $9,000 for an annuity. The annuity will pay $1,000 for 12 years. How much of the annuity cash payments will be considered as a taxable income? 750, 0, 1000, or 250? 4) We discussed several divorce payments. Which category will be included on the recipient's tax return as gross income if the divorce happened after 2018? Alimony, Property Settlements, Child Support, All of the Above, or None of the Above 5) Normally, for a taxable item to be considered realized there must have been an ownership transfer and the transaction involves a secondary party. True or False

If the Potinsky household spends $27,600 annually on all living expenses and long-term debt, calculate the amount recommend for an emergency fund.  How might household circumstances, e.g., wage earners in the household, available credit, and type and stability of employment, affect this decision? The emergency fund amount would range from $? to $?.  Round to the nearest dollar and enter the range from lowest to highest.

1. An employee whose current-year earnings subject to Social Security tax are $137,900 and whose earnings subject to Social Security tax during the current period are $6,450, owes Social Security tax of $_______ . 2. A small business, for which the SIMPLE IRA plan is designed, consists of fewer than _____ employees. Answer:   A.    50     B.    100     C.    500     D.    1,000   3. The income threshold for Additional Medicare Tax levied is based on the _____. Answer:   A.    age of the employee     B.    amount in the employee's Social Security account     C.    Social Security income threshold     D.    employee's tax return filing status

Required information [The following information applies to the questions displayed below.] In 2021, Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is from salary and he does not have any for AGI deductions. What is his earned income credit in 2021 in the following alternative scenarios? Use Exhibit 8-11. (Round your intermediate and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) c. Zach is 29 years old and his AGI is $19,000. Earned income credit

What is the amount of dependent care credit for a couple with two children where they spend $5,000 for dependent care and the husband earns $40,000 for the year and the wife earns $4,500 before the income tax limitation? $1,000 $990 $900 $0 None of these

Benny is supported by the people listed below. 19-year-old child 15-year-old child 67-year-old mother In 2021, how many of these dependents will be eligible for the $500 nonrefundable Other Dependents Credit?

! Required information [The following information applies to the questions displayed below.] In 2021, Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is from salary and he does not have any for AGI deductions. What is his earned income credit in 2021 in the following alternative scenarios? Use Exhibit 8-11. (Round your intermediate and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a. Zach is 29 years old and his AGI is $5,000. Earned income credit

Self-Study Problem 5.4 For each taxpayer, compute the maximum contribution to the retirement plan. a. Lewis, a self-employed individual, has net earned income of $50,000 in 2021. If Lewis has no employees, calculate the maximum contribution to a SEP plan that he may deduct from his adjusted gross income. X b. During 2021, Linda, age 32, has a salary of $40,000. She participates in a Section 401(k) plan and chooses to defer 25 percent of her compensation. What is the maximum amount Linda can contribute to the Section 401(k) plan on a tax-deferred basis? $ 10,000 If Linda's salary was $125,000, instead of $40,000, what is the maximum amount that she could contribute to the Section 401(k) plan on a tax- deferred basis? X

19) STUDENT LOANS. You graduated from college a year ago and forgot to pay your student loans. a Federal student loan, and another is a private loan. What do you do, how do you fix it?

Contributions to a Traditional IRA may be tax-deductible depending on the taxpayer's income, tax - filling status, and other factors. Taxes on eamings are deferred until withdrawals begin, which is usually in retirement. 3. Discuss the role of Social Security benefits in a retirement plan by addressing the following: a. Purpose: describe the difference between FICA and Medicare. Next, indicate how each af these benefits are funded (i.e. emplayee, employer, or bath). b. Eligibility: summarize the eligibility requirements for collecting Social Security. c. Benefit Age: summarize the three ages that people usually collect Social Security. If you were close to the youngest age, would you start collecting as soon as possible, or would you delay? If you would delay, indicate the age you would select and provide your rationale. d. Retirement impact: describe the role that Social Security would play in your retirement plan. Based on the information provided in this module, what percentage of a…

Leah earns $2,600 this pay period. Her total pay before this pay was $23,500. Leah has the following withholdings. Medical Insurance Prem. = $300 401K $150 !! YMCA Dues $50 Flexible Spending Plan $150 What is Leah's Social Security taxable wage amount for this pay period? (Not the amount of actual Social Security Withheld) NOTE: Do NOT use Dollar Signs $$ or commas in your answer

Which of the following situations describes a risk exposure that can be most appropriately insured against with an individual disability income policy?   A)A self-employed bookkeeper earns $40,000 a year out of a small office located in her neighborhood, and wants to protect her income.   B)A lawyer wants to make sure his business overhead expenses are covered if he becomes disabled.   C)A couple with a military retirement income manages a self-storage business, and they are compensated with a place to live that is on the premises of the business.   D)An accountant's spouse owns the building in which the accounting office is located. All of the practice’s income is used to pay rent and other business expenses, so the accountant has no compensation from the business.

A qualifying individual for the purposes of the child and dependent care expenses credit includes all of the following except: Multiple Choice A dependent under the age of 13. An adult child who is incapable of caring for himself/herself, who lived with the taxpayer for at least half of the year. A dependent child, age of 17 who attends school full time. A spouse who is incapable of caring for himself/herself, who lived with the taxpayer for at least half of the year.

Old Age Security (OAS) differs from the CPP in many ways.  Which of the following statements does NOT represent an accurate contrast?   a OAS payments are reduced according to how high your other sources of retirement income are, whereas CPP is not affected by other income sources   b OAS does not provide any financial allowance for a widowed partner of someone who received OAS, whereas CPP does   c OAS is paid for with tax dollars, rather than like CPP through employer/employee contributions   d OAS is not related to the amount of money you made while you were working, whereas CPP is