Taxpayer Lucas is not married. In 2 0 2 3 he supported his younger brother who lived
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Taxpayer Lucas is not married. In he supported his younger brother who lived with him the entire year. Lucas younger brother is years old and is a fulltime college student. Lucas brother earned $ working at the campus coffee shop in Lucas provided all of the food and housing costs for his brother, much more than of his brothers total support costs. Lucas also provided financial assistance for his father who lives in an apartment nearby. Lucas father has no gross income but does receive Social Security income which is not taxable and is not counted as gross income. Lucas provides of his fathers support and his father provides the rest of his own support.
Lucas works as a teacher, earning a salary of $ for His employer proves a qualified retirement plan and Lucas chooses to contribute $ of his salary to the retirement plan. His employer matches employee contributions to the plan and also contributed $ to Lucas retirement account. Additionally, Lucas employer pays for of his health insurance, a benefit worth $ per year.
Lucas has been a teacher for several years. In he received a small award from his employer for reaching the year employment milestone. This is Lucas first service award. The value of the award was $
One day in Lucas found a $ bill in the parking lot at the grocery store. Lucas decided to keep the money and treat himself to lunch. He also won a $ gift card to Amazon in his employers fitness challenge.
During Lucas earned $ of interest income from a City of Los Angeles municipal bond and $ of ordinary dividends from stock he owned. In January of just for fun, Lucas purchased some stock in Procter & Gamble for $ Lucas sold all of the stock in for $
Provide answers for each of the following components of Lucas tax situation and show any necessary calculations to support your answers:
Does Lucas have any dependents for
What filing status is best for Lucas for Provide an explanation for your decision.
Compute Lucas gross income for If you excluded any income from your answer, explain why.
Compute Lucas taxable income for
Compute Lucas; tax liability for
Determine Lucas effective tax rate for
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: