Dustin (age 53) and Amanda (age 52) are married. They have a 20 year old daughter...
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Dustin (age 53) and Amanda (age 52) are married. They have a 20 year old daughter named Lily. Lily is a sophomore at university where she boards except for holidays when she comes home. Elliot, a friend of Dustin, lives with Dustin and Amanda for the entire year. Elliot and Lily are both U.S. citizens, Lily earned $5,000 working part-time and Elliot is unemployed. Dustin and Amanda provide all of their support. During 2021, Dustin earned a salary of $50,000, and Amanda earned a salary of $53,000. They also received $2,000 in qualified dividend income. Dustin contributed $5,000 to a Traditional IRA and Amanda contributed $3,000 to a Roth IRA. They made charitable contributions of $2,500 in cash to Michigan State University (a public charity). a) What is Dustin and Amanda's filing status in 2021? (3 points) b) What is Dustin and Amanda's adjusted gross income (AGI) in 2021? (8 points) c) Can Elliot be claimed as a dependent by Dustin and Amanda? If so, is he a qualifying child or qualifying relative? (4 points) d) Can Lily be claimed as a dependent by Dustin and Amanda? If so, is he a qualifying child or qualifying relative? (4 points) e) What is Dustin and Amanda's taxable income in 2021? (6 points) f) What is Dustin and Amanda's total income tax liability (before any tax credits)? (5 points) (Use the tax rate schedules, long-term capital gains tax brackets.) Dustin (age 53) and Amanda (age 52) are married. They have a 20 year old daughter named Lily. Lily is a sophomore at university where she boards except for holidays when she comes home. Elliot, a friend of Dustin, lives with Dustin and Amanda for the entire year. Elliot and Lily are both U.S. citizens, Lily earned $5,000 working part-time and Elliot is unemployed. Dustin and Amanda provide all of their support. During 2021, Dustin earned a salary of $50,000, and Amanda earned a salary of $53,000. They also received $2,000 in qualified dividend income. Dustin contributed $5,000 to a Traditional IRA and Amanda contributed $3,000 to a Roth IRA. They made charitable contributions of $2,500 in cash to Michigan State University (a public charity). a) What is Dustin and Amanda's filing status in 2021? (3 points) b) What is Dustin and Amanda's adjusted gross income (AGI) in 2021? (8 points) c) Can Elliot be claimed as a dependent by Dustin and Amanda? If so, is he a qualifying child or qualifying relative? (4 points) d) Can Lily be claimed as a dependent by Dustin and Amanda? If so, is he a qualifying child or qualifying relative? (4 points) e) What is Dustin and Amanda's taxable income in 2021? (6 points) f) What is Dustin and Amanda's total income tax liability (before any tax credits)? (5 points) (Use the tax rate schedules, long-term capital gains tax brackets.)
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Answer rating: 100% (QA)
a Dustin and Amandas filing status in 2021 would most likely be Married Filing Jointly since they are married b To calculate Dustin and Amandas adjusted gross income AGI in 2021 we need to consider th... View the full answer
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
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