Question: Richa Wood is employed as a Controller at a local private company and has a net income of $132,450, all of which is employment income.
Richa Wood is employed as a Controller at a local private company and has a net income of $132,450, all of which is employment income. Her husband has a net income of $2,600. They have three children, ages 14, 16, and 19. All of these children are in good health and continue to live at home. The 19-year-old child has a net income of $8,700. During the current year 2022, Ms. Wood pays the following medical expenses:
Richa $4,240
Her Spouse 4,450
14-Year-Old Child 2,860
16-Year-Old Child 2,450
19-Year-Old Child 6,720
Required:
A) Calculate the amount of allowable medical expenses that Richa can claim [7 Marks]
B) Calculate the amount of total applicable federal income tax benefit for Ms. Wood. [5 Marks]
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