Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $ 27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000. Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.
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- Jenny Smith, age 57, is single. Jenny earned wages of $52,000 and was enrolled the entire year in a high deductible healthplan (HDHP) with self-only coverage. During the year, Jenny contributed $2,000 to her Health Savings Account (HSA) and hermother also contributed $1,000 to Jenny's HSA account. Jenny's Form W-2 shows $650 in Box 12 with code W. She has Form 5498-SA showing$3,650 in Box 2.. Jenny took a distribution from her HSA to pay her unreimbursed expenses: 8 visits to a physical therapist after her knee surgery $400 unreimbursed doctor bills for $900 prescription medicine $200 replacement of a crown $1,500 over the counter medication $40 gym membership $240 Jenny is a U.S. citizen with a valid Social Security number. 6. Form 8889, Part 1 is used to report HSA contributions made by _______________. a. Jenny b. Jenny's employer c. Jenny's mother d. All of the above Jenny is eligible to contribute an additional $1,000 to her HSA because she is age 55…Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. C Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) The amount that Ursula must include in income…Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) 0 $4,100 Ursula must report income of She must report…
- Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: (Click the icon to view the premiums attributable to Ursula.) During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. Read the requirements. Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Data table Medical and health Disability Group term life (face amount is $40,000) S 3,600 300 200 C XCarol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 6. Carol can claim $__________ as her HSA contribution on Form 8889, Part 1.Cleveland is a post office carrier and has an HSA account with a balance of $24,568. $11,500 of that balance are the contributions he made and the remaining $13,068 are growth. His daughter, Roberta, needs to have surgery after tearing her ACL playing basketball. The BXBS policy has a family deductible of $2,500, coinsurance of 80/20, and a family max out of pocket is $12,500. If Cleveland uses the HSA account to cover their portion, how much of the distribution will be taxable? $2,500 53.2% of the distribution $12,500 O $0
- Carol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 8. The over the counter sinus medication is a qualified medical expense for HSApurposes. True FalseJosh contributes $5,000 toward the support of his widowed mother, aged 69, a U.S. citizen and resident. She earns gross income of $2,000 and spends it all for her own support. In addition, Medicare pays $3,200 of her medical expenses. She does not receive financial support from sources other than those described above. Must the Medicare payments be included in the support that Josh's mother is deemed to provide for herself?Lisa, age 45, needed some cash so she withdrew $50,000 from her Roth IRA. At the time the distribution, the balance in the Roth IRA was $200.000Lisa established the Roth IRA eight years ago. Through a conversion and annual contributions, she has contributed $20,000 to er account. What amount of the distribution is taxable and subject to early distribution penalty?
- For the past three years, Gurpreet has been contributing $10,000 to a spousal RRSP, which his wife Divya, as the annuitant. Last year, Divya retired and transferred her spousal RRSP to a spousal RRIF and elected to make the minimum withdrawals based on her own age. At the beginning of this year, Divya was 65 years old and the RRIF value was $222,500. This year, Divya withdrew $20,000 from her spousal RRIF. How much would Divya be required to include in her income for tax purposes?Mary is an 80-year-old-widow. Last year, Mary earned investment income of $1,570, and she had no other income. For this year, she is eligible for the maximum OAS benefit of $7,217.40. If the maximum GIS benefit is $10,779.84, how much in OS/GIS payments is Mary entitled to receive? O a) $7,217.40 O b) $9,994.84 O c) $17,212.24 O d) $17,997.24Sunya established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $22,000 when the children were five years old. Sunya made no further contributions to his children’s plans. Thirteen years later, both children have graduated from high school. Kim’s fund has accumulated to $45,000, and Jim’s has accumulated to $42,000. Kim decides to attend a state university, which will cost $60,000 for four years (tuition, fees, room and board, and books). Jim decides to go to work instead of going to college. During the current year, $7,500 is used from Kim’s plan to pay the cost of her first semester in college. Because Jim is not going to college now or in the future, Sunya withdraws the $42,000 plan balance and gives it to Jim to start his new life after high school. What are the tax consequences to Jim (is any amount taxable and why) of Jim’s qualified tuition program being closed?