Reference no: EM133097401

Questions -

Q1. John, age 26, married Diane, age 25, in 2020. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. John and Dianne's deductions for adjusted gross income amounted to $2,000, their itemized deductions were $16,000, and they have no dependents. What is the amount of their taxable income?

Q2. Christine is a single 50-year-old taxpayer with no dependents. Her only income is $40,751 of wages. Calculate her tax liability.

Q3. Don and Dawn are married and file separate returns for 2020. Dawn itemizes her deductions on her return. Dons' adjusted gross income was $17,401, his itemized deductions were $2,250. Neither have any dependents. Calculate Dons' income tax liability.

Q4. Andy, age 50, and Marilyn, age 49, are married with three dependent children. They file a joint return for 2020. Their income from salaries totals $49,500, and they received $10,125 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Andy and Marilyn deductions for adjusted gross income amount to $3,200, and they have itemized deductions totaling $18,200. What is their AGI?

Q5. Bree and Tom are married and file a joint return for 2020. During the year, Bree, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Tom used the same amount.

Bree and Tom also used $850 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline.

Tom is employed at State University as an accounting clerk. Under a tuition reduction plan, Tom saved $4,000 in tuition fees during 2020. He is studying for a master's degree in business at night while still working full-time.

Tom also had $30 worth of personal typing done by his administrative assistant at the University.

What is the amount of fringe benefits that should be included in Bree and Tom's gross income on their 2020 tax return?