Paul and Sonja, who are married, had itemized deductions of $14,200 and $400, respectively, during 2018. Paul
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Question:
- Paul and Sonja, who are married, had itemized deductions of $14,200 and $400, respectively, during 2018. Paul suggests that they file separately—he will itemize his deductions from AGI, and she will claim the standard deduction.
- Evaluate Paul’s suggestion.
- What should they do?
- Compute the taxable income for 2018 for Emily on the basis of the following information. Her filing status is single.
Salary | $85,000 |
Interest income from bonds issued by Xerox | 1,100 |
Alimony payments received (divorce occurred in 2014) | 6,000 |
Contribution to traditional IRA | 5,500 |
Gift from parents | 25,000 |
Short-term capital gain from stock investment | 2,000 |
Amount lost in football office pool | 500 |
Age | 50 |
- Determine the amount of the standard deduction allowed for 2018 in the following independent situations. In each case, assume that the taxpayer is claimed as another person’s dependent.
- Curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $12,200 from repairing cars.
- Mattie, age 18, has income as follows: $600 cash dividends from a stock investment and $4,700 from handling a paper route.
- Jason, age 16, has income as follows: $675 interest on a bank savings account and $800 for painting a neighbor’s fence.
- Ayla, age 15, has income as follows: $400 cash dividends from a stock investment and $500 from grooming pets.
- Sarah, age 67 and a widow, has income as follows: $500 from a bank savings account and $3,200 from babysitting.
Related Book For
South western Federal Taxation 2017 Essentials of Taxation Individuals and Business Entities
ISBN: 9780357109144
20th edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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