Read each case carefully and, as determined in the Puerto Rico Internal Revenue Code, identify the deductions,
Question:
Read each case carefully and, as determined in the Puerto Rico Internal Revenue Code, identify the deductions, calculate the amount of deductions and what the determined contribution would be. Use the return from the last available taxable year and its respective annexes as a reference.
Case 1: Rafael Rivera and Maritza Jimnez Rafael Rivera is married and has a manager position in a private company, where he had an income of $45,000 and a withholding of $1,200. His wife, Maritza Jimnez, is a secretary and receives a salary of $35,000; she had a withholding of $550. The couple file returns together and have two children: a 25-year-old son, who is studying at university, and a 21-year-old son, who is not studying. Rafael has a house for which he paid $15,000 in mortgage interest. They had medical bills of $7,000 and donated $500 to the Salvation Army. They belong to a church to which they paid a tithe of 10% of their gross salary.
Case 2: Jonathan Mndez and Josefa Castro Jonathan Mndez is a teacher and is married. He had a salary of $42,000 and a withheld contribution of $2,500. Jonathan obtained an IRA for himself of $5,000 and received dividends of $7,000 from an investment made in a company. His wife, Josefa Castro, who works as a draftsman in a company, had an income of $46,000. The couple has a joint bank account and received $3,500 in interest from the bank. They have two children in common: Teresa, 15, and Camilo, 24, who is a full-time university student. They paid $14,500 in mortgage interest and had medical expenses of $8,000. Josefa also underwent cosmetic surgery, for which she paid $5,000. They belong to a church to which they paid a tithe of 10% of their salary. The couple also made a donation of $1,000 to the municipality where he resides.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill