Reference no: EM132379624
Question
#2: David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,700. They have made prepayments of $1,500 and also have a refundable child tax credit of $2,000. What is the amount of their tax refund or taxes due?
#3: Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages and Rick has $40,500 in qualified business income (QBI). Assume Rick files single. Rick deducts the standard deduction instead of itemized deductions. What is the amount of Rick's after-tax compensation (ignore payroll taxes)?
#4: Assume Jared is a single taxpayer who makes $115,000. This year, Jared has the following expenses: Itemized deductions of $16,800. The standard deduction is $12,200. Jared wants to minimize his taxable income so should he take the standard deduction or itemize?
#5: Becky (age 34) and Lisa (age 33) are roommates. Becky earns $75,000 from her job, while Lisa earns $7,000 from her waitressing job (she is an aspiring painter). Because Lisa is having a hard time financially, Becky pays for Lisa's share of rent, meals, utilities, etc. for the year ($22,000). Lisa spends all of her income on other living expenses. Can Becky claim Lisa as a qualifying relative and receive an additional dependency exemption?
#6: Janet's husband passed away in 2018. She needs to determine whether Jasmine, her 17-year old stepdaughter who is single, qualifies as her dependent in 2019. Jasmine is a resident but not a citizen of the United States. She lived in Janet's home from June 15 through December 31, 2019.
a. Janet provided more than half of Jasmine's support for 2019. Is Janet allowed to claim a Jasmine as a dependent for 2019?
b. Would Janet be allowed to claim Jasmine as a dependent for 2019 if Janet provided more than half of Jasmine's support in 2019, Jasmine lived in Janet's home from July 15 through December 31 of 2019, and Jasmine reported gross income of $5,000 in 2019?
c. Would Janet be allowed to claim Jasmine as a dependent for 2019 if Janet provided more than half of Jasmine's support in 2019, Jasmine lived in Janet's home from July 15 through December 31 of 2019, and Jasmine reported gross income of $2,500 in 2019?