This year Gerry's friend, Dewey, was disabled. Gerry paid $14,500 to Dewey's doctor for medical expenses and paid $13,000 t University for college tuition for Dewey's son. Required: a-1. Has Gerry made taxable gifts? a-2. What is the amount of the taxable gift? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the taxable gift? (Leave no answer blank. Enter zero if applicable.)
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According to IRS,
Any transfer to an individual either directly or indirectly where full consideration is not received in return considered asa gifta.
Any amount paid to another as a gift is taxable gift however, there are some exceptions regarding this.
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- In 2021, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and other qualified higher education expenses. What amount is taxable to Amy? a.$0 b.$8,000 c.$3,000 d.$11,0001. Hester (age 17) is claimed as a dependent by his parents, Charlton and Abigail. In 2022, Hester received $10,150 of qualified dividends, and he received $13,150 from a part-time job. What is his taxable income for 2022**? (Use Standard deduction at the link: https://bit.ly/3g6MGeg) Show me your work or explain your reasoning a. $23,300 b. $22,150 c. $10,350 d. $9,650 2. In 2022**, Cassy reports a gross tax liability of $1,180. She also claims $580 of nonrefundable personal credits, $790 of refundable personal credits, and $380 of business credits. What is Cassy's tax refund or tax liability due after applying the credits? a. $1,180 taxes payable b. SO refund or taxes payable c. $790 refund d. $570 refundA married couple received $11,000 of social security benefits. a. Calculate the taxable amount of those benefits if the couple's provisional income is $24,500. b. Calculate the taxable amount of those benefits if the couple's provisional income is $42,500. c. Calculate the taxable amount of those benefits if the couple's provisional income is $65,000. a. b. " Taxable amount of benefits $ 0
- 26.Gina receives a $2,900 distribution from her educational savings account. She uses $1,500 to pay for qualified higher education expenses and $1,400 on a vacation. Immediately prior to the distribution, Gina’s account balance is $5,000, $3,000 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution? $1,400 $560 $840 $0 27. Which of the following is correct for Qualified Tuition Programs (Section 529 plans)? Contributions are deductible, and qualified educational expense distributions are tax free. Contributions are not deductible, and qualified educational expense distributions are tax free. Contributions are deductible, and qualified educational expense distributions are taxable. Contributions are not deductible, and qualified educational expense distributions are taxable.! Required information Problem 5-56 (LO 5-2) (Algo) [The following information applies to the questions displayed below.] Grady received $8,600 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Note: Leave no answer blank. Enter zero if applicable. Problem 5-56 Part d (Algo) d. Grady files married joint and reports salary of $44,000 and interest income of $800. Amount to be included in gross income1. Nicole is a student at USB Law School; she receives a $52,000 scholarship. Of the $52,000, $40,000 is used for tuition, $5,000 is used for books, and $7,000 is used for room and board. How much of the scholarship is excluded from taxable income for Nicole? a.$52,000 b.$5,000 c.$7,000 d.$45,000 e.$47,000 2. To pay for college, Henry received the following: $1,000 scholarship from the Thespian Club to pay for books$4,000 scholarship from the Elks Lodge for tuition$5,000 worth of room and board as a dorm supervisor through a work-study programHow much income must Henry report on his tax return? a.$4,000 b.$0 c.$5,000 d.$6,000 e.$10,000 3. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as…
- Carol makes the following business gifts during the tax year. Calculate Carol's allowed deduction for each business gift and her total allowed deduction. If an amount is zero, enter "0". Donee Amount Deduction 1. Mr. Jones (a client) $20 $fill in the blank 1 2. Mr. Brown (a client) 32 fill in the blank 2 3. Mrs. Green (a client) received a $15 gift while herhusband, Mr. Green (a non-client) received an $18 gift 33 fill in the blank 3 4. Ms. Gray (Carol's supervisor) 45 fill in the blank 4 5. Mr. Edwards (a client) receiving a display rack with Carol's company name on it 75 fill in the blank 5 6. Various customers (receiving ball point pens with the company name on them) 140 fill in the blank 6 Total business gift deduction $fill in the blank 7Windsor is employed at Rockstar Music. Windsor is receiving education assistance of $6,050 per year from Rockstar Music to complete a bachelor's degree from an accredited college. Required: How much of that assistance is taxable? Taxable assistance D BFor the holidays, Marty gave a watch worth $22,300 to Emily and jewelry worth $46,000 to Natalie.Required: Has Marty made any taxable gifts this year and, if so, in what amounts? Assume Marty is married to Wendy and they live in a community-property state. What are the amounts, if any, of their taxable gifts? (For all requirements, leave no answer blank. Enter zero if applicable.) a.Marty's taxable gift to Emily$ Marty's taxable gift to Natalie$ b.Marty's taxable gift to Emily$0 Marty's taxable gift to Natalie$ Wendy's taxable gift to Emily$0 Wendy's taxable gift to Natalie$
- Compute the taxable income for 2023 in each of the following independent situations. Click here to access the Exhibits 3.4 and 3.5 to use if required. a. Aaron and Michele, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $29,000. AGI Less: Itemized deductions Taxable income b. Sybil, age 40, is single and supports her dependent parents who live with her, as well as her grandfather who is in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000. AGI Less: Standard deduction Taxable income AGI Less: Standard deduction c. Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $76,800 and itemized deductions of $10,100. Taxable income $125,000 AGI Less: Standard deduction $80,000 d. Amelia, age 33, is an abandoned spouse who maintains a household for her three dependent children. She has…Hi there, can you please provide the full solution to the following question? Mary gave her annual income and deduction below. Calculate her Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the taxpayer (Mary) with the information below:• Mary is a resident single mom with one dependent child (4 years old) taxpayer of Australia for the taxyear 2021-2022• Her Taxable Salary earned is $110,000 (Including tax withheld) having no private health insurance.• She had a $12,000 deduction.• Mary has a student loan outstanding for his previous studies at Queensland University of $32,000.• Mary’s employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominatedfund.• Mary earned a passive income of $5,000 from the investments in shares in the same tax year.Required: A married couple received $9,200 of social security benefits. a. Calculate the taxable amount of those benefits if the couple's provisional income is $20,500. b. Calculate the taxable amount of those benefits if the couple's provisional income is $38,000. c. Calculate the taxable amount of those benefits if the couple's provisional income is $56,000. Taxable amount of benefits a. b. C.