Reference no: EM13840778

Problem 1:  J . Paige, Social Security number 111-22-3333, is the vice president of marketing (Japan) for International Industries, Inc. (III). III is headquartered at 123 Main Street, Los Angeles, California 92601. A. J., who is single, accepted the position and became a resident of Japan on July 8 of last year. Her business address is 86 Sano, Tokyo, Japan. A. J.'s visa permits her to stay in Japan indefinitely. Her only trips to the United States in the current year were for vacations (August 2 to 16 and December 21 to 28). A. J.'s contract specifies that her appointment is to last indefinitely, but states that III is to pay her $4,000 per year to cover the cost of two vacation trips to the United States. Her salary is $140,000, out of which she pays rent on an apartment of $28,000 per year. A. J. has no family or residence in the United States. She paid an income tax in Japan of $23,500. Complete a Form 2555.

Problem 2: Monica, a widow is retired and receives Social Security Benefits of  $ 18,000 in 2014. She has a Adjusted Gross Income of $52,000. Monica must include $ $ __________________________ of her Social Security Benefits in income.

Determine the amount included in income?

Problem 3:  For the 2015 tax year. Kevin and Janet are married and file a joint retire. They have Social Security Benefits of $13,000, and their adjusted gross income is $20,000. They also received $30,000 in tax free municipal bond interest. How much if any, of the Social Security Benefits should this couple include in gross income?