Exam 5: Deductions for Individuals and Tax Determination

Susan (age 29) is single but has the son of her brother living with her as her dependent.If her AGI is $27,800, what is her tax liability in 2019 before any allowable tax credits?

Stephanie and Cal have three dependent children in college.Sally is a freshman and Teri is a sophomore at a small private college in their town where their expenses are $6,500 per year for each student; Lexi is in her third year of medical school in Wisconsin and her related expenses are $12,500 per year.What is the maximum education credit allowed Stephanie and Cal on their joint tax return if their AGI is $126,000 in 2019 and the LLC phaseout range is $116,000 - $136,000?

Colin (age 40) is single and itemizes his deductions.His AGI is $100,000.Colin provided the following information about his cash expenditures for 2019: Interest on loan to purchase corporate securities $ 900 Interest on American Express card 1,200 Points to refinance his home at the end of December 2,600 Mortgage interest payments 11,800 Real estate taxes 2,100 State income taxes withheld on salary 5,400 Additional state income tax estimated payment 1,200 Contribution to Republican Party 2,000 Contribution to United Way 500 What is Colin's deduction for taxes?

Maurice and Judy (both age 32) have one natural daughter, age 4, and adopted twin boys, age 8.Their adjusted gross income on their joint return is $410,000.If they take the standard deduction, what is their tax liability after any allowable tax credits in 2019 if the child tax credit begins to phase out at $400,000?

To qualify as head of household, the taxpayer must pay more than half of the costs of a home in which a qualifying person lives for the entire year.

Amelia, an accountant, normally bills her clients $125 per hour for her time and her adjusted gross income for 2019 was $100,000.In January and February 2019, however, Amelia spent 80 hours of her time volunteering for the Salvation Army doing accounting work.She paid $100 out of her own pocket for supplies and made an additional cash contribution of $1,000 to the Salvation Army in 2019.What is Amelia's charitable contribution deduction for 2019?

Cliff is married and files a joint return.His return shows AGI of $1,268,000 and regular taxable income of $1,224,000.He has $30,000 of preference items and $21,000 of net positive adjustments (including adjustments for itemized deductions).The $111,700 exemption begins to phase out at $1,020,600.What is his AMTI exemption amount?

Which of the following filing statuses can never be used by a single individual?

A non-itemizer's standard deduction is phased out at a certain AGI threshold.