SlideShare a Scribd company logo
1 of 7
Herb and Alice are married and file a joint return. Herb is 74
years old. Alice turned 70 on February 3, 2020. Neither are
blind.
Herb is a retired school teacher, but continues to work part-time
as a substitute teacher. Alice is retired.
Herb earned $15,000 in wages. They also receive pension and
Social Security income and sold some stock. Their combined
AGI is $45,000.
Both Herb and Alice are U.S. citizens and have valid Social
Security numbers.
1. Herb and Alice cannot make contributions to their traditional
IRAs because they are both over 70 1/2
Herb and Alice are married and file a joint return. Herb is 74
years old. Alice turned 70 on February 3, 2020. Neither are
blind.
Herb is a retired school teacher, but continues to work part-time
as a substitute teacher. Alice is retired.
Herb earned $15,000 in wages. They also receive pension and
Social Security income and sold some stock. Their combined
AGI is $45,000.
Both Herb and Alice are U.S. citizens and have valid Social
Security numbers.
2. Alice must take her first required minimum distribution
(RMD) by April 1, and her second RMD by December 31, of
what year________?
Herb and Alice are married and file a joint return. Herb is 74
years old. Alice turned 70 on February 3, 2020. Neither are
blind.
Herb is a retired school teacher, but continues to work part-time
as a substitute teacher. Alice is retired.
Herb earned $15,000 in wages. They also receive pension and
Social Security income and sold some stock. Their combined
AGI is $45,000.
Both Herb and Alice are U.S. citizens and have valid Social
Security numbers.
3. Herb and Alice’s standard deduction is:
A. $24,800
B. $26,100
C. $27,400
D. $28,100
Luther and Lexi are married and file a joint return.
Luther was enrolled in employer-sponsored family coverage
through a high deductible health plan (HDHP) for all of 2020.
His monthly premiums are $300.
In 2020, Luther contributed $1,700 to his Health Savings
Account (HSA). Of that amount, $1,200 was made pretax
through his employer’s cafeteria plan and he made the
remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2
reporting $1,200 in Box 12a, with code W.
Luther received a Form 1099-SA showing a distribution from
his HSA of $230. Luther did not have any medical expenses for
the year. Lexi paid $80 to the dentist for a filling, and $150 for
lab work ordered during her physical.
Luther and Lexi felt fortunate to have good jobs when so many
people in their community were out of work, so they donated
$250 by check to their local food bank. The food bank is a
qualified organization and provided Luther and Lexi with a
written acknowledgment of their donation. They contributed $20
in cash to a fundraiser for a local child’s cancer treatments.
They also donated clothing in good condition with fair market
value of $100 to Goodwill. They have a receipt for the
donation.
Luther and Lexi are U.S. citizens with valid Social Security
numbers. They do not have enough expenses to itemize their
deductions.
6. What amount can Luther take as an HSA deduction?
$________.
Luther and Lexi are married and file a joint return.
In 2020, Luther contributed $1,700 to his Health Savings
Account (HSA). Of that amount, $1,200 was made pretax
through his employer’s cafeteria plan and he made the
remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2
reporting $1,200 in Box 12a, with code W.
Luther was enrolled in employer-sponsored family coverage
through a high deductible health plan (HDHP) for all of 2020.
His monthly premiums are $300.
Luther received a Form 1099-SA showing a distribution from
his HSA of $230. Luther did not have any medical expenses for
the year. Lexi paid $80 to the dentist for a filling, and $150 for
lab work ordered during her physical.
Luther and Lexi felt fortunate to have good jobs when so many
people in their community were out of work, so they donated
$250 by check to their local food bank. The food bank is a
qualified organization and provided Luther and Lexi with a
written acknowledgment of their donation. They contributed $20
in cash to a fundraiser for a local child’s cancer treatments.
They also donated clothing in good condition with fair market
value of $100 to Goodwill. They have a receipt for the
donation.
Luther and Lexi are U.S. citizens with valid Social Security
numbers. They do not have enough expenses to itemize their
deductions.
7. None of the HSA distribution is taxable because the entire
amount was used to pay qualified medical expenses.
a. True
B False
Luther and Lexi are married and file a joint return.
Luther was enrolled in employer-sponsored family coverage
through a high deductible health plan (HDHP) for all of 2020.
His monthly premiums are $300.
In 2020, Luther contributed $1,700 to his Health Savings
Account (HSA). Of that amount, $1,200 was made pretax
through his employer’s cafeteria plan and he made the
remaining $500 contribution by electronic deposit into the HSA
from his checking account. His employer sent Form W-2
reporting $1,200 in Box 12a, with code W.
Luther received a Form 1099-SA showing a distribution from
his HSA of $230. Luther did not have any medical expenses for
the year. Lexi paid $80 to the dentist for a filling, and $150 for
lab work ordered during her physical.
Luther and Lexi felt fortunate to have good jobs when so many
people in their community were out of work, so they donated
$250 by check to their local food bank. The food bank is a
qualified organization and provided Luther and Lexi with a
written acknowledgment of their donation. They contributed $20
in cash to a fundraiser for a local child’s cancer treatments.
They also donated clothing in good condition with fair market
value of $100 to Goodwill. They have a receipt for the
donation.
Luther and Lexi are U.S. citizens with valid Social Security
numbers. They do not have enough expenses to itemize their
deductions.
8. How much of Luther and Lexi’s charitable donations are
deductible on their federal return? $________.
Kendall is single and has no dependents. He is a self-employed
rideshare driver for Widget Ride Share.
Kendall provided a statement from the ride share company that
indicated the amount of mileage driven and fees paid for the
year. These fees are considered ordinary and necessary for the
ride share business:
42,157 miles driven while transporting customers
Ride share fee: $2,000
Airport fee: $365
GPS device fee: $120
His recordkeeping application shows he also drove 4,873 miles
between rides and 2,134 miles driven between his home and his
first and last customer of the day. Kendall started using his car
for business on September 1, 2019. He kept receipts showing he
spent $150 on tolls and $2,761 on gasoline.
Kendall also provided the Form 1099-NEC and Form 1099-K
that he received from Widget. See Form 1099-NEC and Form
1099-K included with this scenario.
Kendall tested positive for COVID-19 and was required to self-
quarantine from April 6 through April 24. As a result, he could
not work during that time.
9. What is Kendall’s total self-employment expense?
$________.

More Related Content

Similar to Herb and Alice are married and file a joint return. Herb is 74 years.docx

·You have been engaged to prepare the 2015 federal income tax re.docx
·You have been engaged to prepare the 2015 federal income tax re.docx·You have been engaged to prepare the 2015 federal income tax re.docx
·You have been engaged to prepare the 2015 federal income tax re.docx
budbarber38650
 
Tax Return-Individual Number Five (after Chapter 12)Instructio.docx
Tax Return-Individual Number Five (after Chapter 12)Instructio.docxTax Return-Individual Number Five (after Chapter 12)Instructio.docx
Tax Return-Individual Number Five (after Chapter 12)Instructio.docx
mattinsonjanel
 
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docxTax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
ssuserf9c51d
 
I dont understand how to plug in the numbers on the correct lines f.pdf
I dont understand how to plug in the numbers on the correct lines f.pdfI dont understand how to plug in the numbers on the correct lines f.pdf
I dont understand how to plug in the numbers on the correct lines f.pdf
allystraders
 
Tax Return-Individual Number Five (after Chapter 12)Instructions.docx
Tax Return-Individual Number Five (after Chapter 12)Instructions.docxTax Return-Individual Number Five (after Chapter 12)Instructions.docx
Tax Return-Individual Number Five (after Chapter 12)Instructions.docx
SANSKAR20
 
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docxFactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
delciegreeks
 
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docxJavier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
careyshaunda
 
Problem Please complete the comprehensive problem providing .docx
Problem  Please complete the comprehensive problem providing .docxProblem  Please complete the comprehensive problem providing .docx
Problem Please complete the comprehensive problem providing .docx
sleeperharwell
 
Assessment Rubric CML101 – Introduction to Business La.docx
Assessment Rubric   CML101 – Introduction to Business La.docxAssessment Rubric   CML101 – Introduction to Business La.docx
Assessment Rubric CML101 – Introduction to Business La.docx
fredharris32
 

Similar to Herb and Alice are married and file a joint return. Herb is 74 years.docx (20)

·You have been engaged to prepare the 2015 federal income tax re.docx
·You have been engaged to prepare the 2015 federal income tax re.docx·You have been engaged to prepare the 2015 federal income tax re.docx
·You have been engaged to prepare the 2015 federal income tax re.docx
 
Tax Return-Individual Number Five (after Chapter 12)Instructio.docx
Tax Return-Individual Number Five (after Chapter 12)Instructio.docxTax Return-Individual Number Five (after Chapter 12)Instructio.docx
Tax Return-Individual Number Five (after Chapter 12)Instructio.docx
 
1- Jacob and Chloe are married and together have AGI of $30-000- They.docx
1- Jacob and Chloe are married and together have AGI of $30-000- They.docx1- Jacob and Chloe are married and together have AGI of $30-000- They.docx
1- Jacob and Chloe are married and together have AGI of $30-000- They.docx
 
ACC 547 MASTER Achievement Education--acc547master.com
ACC 547 MASTER Achievement Education--acc547master.comACC 547 MASTER Achievement Education--acc547master.com
ACC 547 MASTER Achievement Education--acc547master.com
 
ACC 547 Enhance teaching - tutorialrank.com
ACC 547 Enhance teaching - tutorialrank.comACC 547 Enhance teaching - tutorialrank.com
ACC 547 Enhance teaching - tutorialrank.com
 
ACC 547 MASTER Redefined Education--acc547master.com
ACC 547 MASTER  Redefined Education--acc547master.comACC 547 MASTER  Redefined Education--acc547master.com
ACC 547 MASTER Redefined Education--acc547master.com
 
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docxTax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
Tax Return Assignment Rutgers - Spring 2017 – Larson 1.docx
 
ACC 547 OUTLET Possible Is Everything / acc547outlet.com
ACC 547 OUTLET Possible Is Everything / acc547outlet.comACC 547 OUTLET Possible Is Everything / acc547outlet.com
ACC 547 OUTLET Possible Is Everything / acc547outlet.com
 
I dont understand how to plug in the numbers on the correct lines f.pdf
I dont understand how to plug in the numbers on the correct lines f.pdfI dont understand how to plug in the numbers on the correct lines f.pdf
I dont understand how to plug in the numbers on the correct lines f.pdf
 
Tax Return-Individual Number Five (after Chapter 12)Instructions.docx
Tax Return-Individual Number Five (after Chapter 12)Instructions.docxTax Return-Individual Number Five (after Chapter 12)Instructions.docx
Tax Return-Individual Number Five (after Chapter 12)Instructions.docx
 
ACC 547 Education Organization -- snaptutorial.com
ACC 547   Education Organization -- snaptutorial.comACC 547   Education Organization -- snaptutorial.com
ACC 547 Education Organization -- snaptutorial.com
 
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docxFactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
FactsJavier F. and Eldi M. Barbosa are married and live at 1268.docx
 
ACC 547 Expect Success/newtonhelp.com
ACC 547 Expect Success/newtonhelp.comACC 547 Expect Success/newtonhelp.com
ACC 547 Expect Success/newtonhelp.com
 
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docxJavier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
Javier F. and Eldi M. Barbosa are married and live at 12680 SW 126 A.docx
 
Problem Please complete the comprehensive problem providing .docx
Problem  Please complete the comprehensive problem providing .docxProblem  Please complete the comprehensive problem providing .docx
Problem Please complete the comprehensive problem providing .docx
 
Assessment Rubric CML101 – Introduction to Business La.docx
Assessment Rubric   CML101 – Introduction to Business La.docxAssessment Rubric   CML101 – Introduction to Business La.docx
Assessment Rubric CML101 – Introduction to Business La.docx
 
Acc 547 final exam guide
Acc 547 final exam guideAcc 547 final exam guide
Acc 547 final exam guide
 
AC 309 Unit 2 Chapter Problems
AC 309 Unit 2 Chapter ProblemsAC 309 Unit 2 Chapter Problems
AC 309 Unit 2 Chapter Problems
 
ACC 547 OUTLET Become Exceptional--acc547outlet.com
ACC 547 OUTLET Become Exceptional--acc547outlet.comACC 547 OUTLET Become Exceptional--acc547outlet.com
ACC 547 OUTLET Become Exceptional--acc547outlet.com
 
ACC 547 OUTLET Education for Service--acc547outlet.com
ACC 547 OUTLET Education for Service--acc547outlet.comACC 547 OUTLET Education for Service--acc547outlet.com
ACC 547 OUTLET Education for Service--acc547outlet.com
 

More from simonithomas47935

HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docxHOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
simonithomas47935
 
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docxHou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
simonithomas47935
 
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docxHow (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
simonithomas47935
 
hoose (1) one childhood experience from the list provided below..docx
hoose (1) one childhood experience from the list provided below..docxhoose (1) one childhood experience from the list provided below..docx
hoose (1) one childhood experience from the list provided below..docx
simonithomas47935
 
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docxHomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
simonithomas47935
 

More from simonithomas47935 (20)

Hours, A. (2014). Reading Fairy Tales and Playing A Way of Treati.docx
Hours, A. (2014). Reading Fairy Tales and Playing A Way of Treati.docxHours, A. (2014). Reading Fairy Tales and Playing A Way of Treati.docx
Hours, A. (2014). Reading Fairy Tales and Playing A Way of Treati.docx
 
How are authentication and authorization alike and how are the.docx
How are authentication and authorization alike and how are the.docxHow are authentication and authorization alike and how are the.docx
How are authentication and authorization alike and how are the.docx
 
How are self-esteem and self-concept different What is the or.docx
How are self-esteem and self-concept different What is the or.docxHow are self-esteem and self-concept different What is the or.docx
How are self-esteem and self-concept different What is the or.docx
 
How are morality and religion similar and how are they different.docx
How are morality and religion similar and how are they different.docxHow are morality and religion similar and how are they different.docx
How are morality and religion similar and how are they different.docx
 
How are financial statements used to evaluate business activities.docx
How are financial statements used to evaluate business activities.docxHow are financial statements used to evaluate business activities.docx
How are financial statements used to evaluate business activities.docx
 
How are Japanese and Chinese Americans similar How are they differe.docx
How are Japanese and Chinese Americans similar How are they differe.docxHow are Japanese and Chinese Americans similar How are they differe.docx
How are Japanese and Chinese Americans similar How are they differe.docx
 
Hot Spot PolicingPlace can be an important aspect of crime and.docx
Hot Spot PolicingPlace can be an important aspect of crime and.docxHot Spot PolicingPlace can be an important aspect of crime and.docx
Hot Spot PolicingPlace can be an important aspect of crime and.docx
 
HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docxHOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
HOSP3075 Brand Analysis Paper 1This is the first of three assignme.docx
 
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docxHou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
Hou, J., Li, Y., Yu, J. & Shi, W. (2020). A Survey on Digital Fo.docx
 
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docxHow (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
How (Not) to be Secular by James K.A. SmithSecular (1)—the ea.docx
 
Hopefully, you enjoyed this class on Digital Media and Society.Q.docx
Hopefully, you enjoyed this class on Digital Media and Society.Q.docxHopefully, you enjoyed this class on Digital Media and Society.Q.docx
Hopefully, you enjoyed this class on Digital Media and Society.Q.docx
 
hoose (1) one childhood experience from the list provided below..docx
hoose (1) one childhood experience from the list provided below..docxhoose (1) one childhood experience from the list provided below..docx
hoose (1) one childhood experience from the list provided below..docx
 
honesty, hard work, caring, excellence HIS 1110 Dr. .docx
honesty, hard work, caring, excellence  HIS 1110      Dr. .docxhonesty, hard work, caring, excellence  HIS 1110      Dr. .docx
honesty, hard work, caring, excellence HIS 1110 Dr. .docx
 
hoose one of the four following visualsImage courtesy o.docx
hoose one of the four following visualsImage courtesy o.docxhoose one of the four following visualsImage courtesy o.docx
hoose one of the four following visualsImage courtesy o.docx
 
HomeworkChoose a site used by the public such as a supermark.docx
HomeworkChoose a site used by the public such as a supermark.docxHomeworkChoose a site used by the public such as a supermark.docx
HomeworkChoose a site used by the public such as a supermark.docx
 
Homework 2 Please answer the following questions in small paragraph.docx
Homework 2 Please answer the following questions in small paragraph.docxHomework 2 Please answer the following questions in small paragraph.docx
Homework 2 Please answer the following questions in small paragraph.docx
 
HomeNotificationsMy CommunityBBA 2010-16J-5A21-S1, Introductio.docx
HomeNotificationsMy CommunityBBA 2010-16J-5A21-S1, Introductio.docxHomeNotificationsMy CommunityBBA 2010-16J-5A21-S1, Introductio.docx
HomeNotificationsMy CommunityBBA 2010-16J-5A21-S1, Introductio.docx
 
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docxHomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
HomeAnnouncementsSyllabusDiscussionsQuizzesGra.docx
 
Homeless The Motel Kids of Orange CountyWrite a 1-2 page pa.docx
Homeless The Motel Kids of Orange CountyWrite a 1-2 page pa.docxHomeless The Motel Kids of Orange CountyWrite a 1-2 page pa.docx
Homeless The Motel Kids of Orange CountyWrite a 1-2 page pa.docx
 
Home work 8 Date 042220201. what are the different between.docx
Home work  8 Date 042220201. what are the  different between.docxHome work  8 Date 042220201. what are the  different between.docx
Home work 8 Date 042220201. what are the different between.docx
 

Recently uploaded

Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
EADTU
 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
AnaAcapella
 

Recently uploaded (20)

PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes GuàrdiaPersonalisation of Education by AI and Big Data - Lourdes Guàrdia
Personalisation of Education by AI and Big Data - Lourdes Guàrdia
 
Đề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinhĐề tieng anh thpt 2024 danh cho cac ban hoc sinh
Đề tieng anh thpt 2024 danh cho cac ban hoc sinh
 
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjjStl Algorithms in C++ jjjjjjjjjjjjjjjjjj
Stl Algorithms in C++ jjjjjjjjjjjjjjjjjj
 
Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"Mattingly "AI and Prompt Design: LLMs with NER"
Mattingly "AI and Prompt Design: LLMs with NER"
 
8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management8 Tips for Effective Working Capital Management
8 Tips for Effective Working Capital Management
 
Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of TransportBasic Civil Engineering notes on Transportation Engineering & Modes of Transport
Basic Civil Engineering notes on Transportation Engineering & Modes of Transport
 
OSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & SystemsOSCM Unit 2_Operations Processes & Systems
OSCM Unit 2_Operations Processes & Systems
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptx
 
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUMDEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
DEMONSTRATION LESSON IN ENGLISH 4 MATATAG CURRICULUM
 
Observing-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptxObserving-Correct-Grammar-in-Making-Definitions.pptx
Observing-Correct-Grammar-in-Making-Definitions.pptx
 
How to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptxHow to Manage Website in Odoo 17 Studio App.pptx
How to Manage Website in Odoo 17 Studio App.pptx
 
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptxAnalyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
Analyzing and resolving a communication crisis in Dhaka textiles LTD.pptx
 
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPSSpellings Wk 4 and Wk 5 for Grade 4 at CAPS
Spellings Wk 4 and Wk 5 for Grade 4 at CAPS
 
An Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppAn Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge App
 
Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"Mattingly "AI & Prompt Design: Named Entity Recognition"
Mattingly "AI & Prompt Design: Named Entity Recognition"
 
Supporting Newcomer Multilingual Learners
Supporting Newcomer  Multilingual LearnersSupporting Newcomer  Multilingual Learners
Supporting Newcomer Multilingual Learners
 
How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17How To Create Editable Tree View in Odoo 17
How To Create Editable Tree View in Odoo 17
 
Book Review of Run For Your Life Powerpoint
Book Review of Run For Your Life PowerpointBook Review of Run For Your Life Powerpoint
Book Review of Run For Your Life Powerpoint
 
Including Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdfIncluding Mental Health Support in Project Delivery, 14 May.pdf
Including Mental Health Support in Project Delivery, 14 May.pdf
 

Herb and Alice are married and file a joint return. Herb is 74 years.docx

  • 1. Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers. 1. Herb and Alice cannot make contributions to their traditional IRAs because they are both over 70 1/2 Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers.
  • 2. 2. Alice must take her first required minimum distribution (RMD) by April 1, and her second RMD by December 31, of what year________? Herb and Alice are married and file a joint return. Herb is 74 years old. Alice turned 70 on February 3, 2020. Neither are blind. Herb is a retired school teacher, but continues to work part-time as a substitute teacher. Alice is retired. Herb earned $15,000 in wages. They also receive pension and Social Security income and sold some stock. Their combined AGI is $45,000. Both Herb and Alice are U.S. citizens and have valid Social Security numbers. 3. Herb and Alice’s standard deduction is: A. $24,800 B. $26,100 C. $27,400 D. $28,100
  • 3. Luther and Lexi are married and file a joint return. Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer’s cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child’s cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for the donation. Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions. 6. What amount can Luther take as an HSA deduction? $________.
  • 4. Luther and Lexi are married and file a joint return. In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer’s cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child’s cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for the donation. Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions.
  • 5. 7. None of the HSA distribution is taxable because the entire amount was used to pay qualified medical expenses. a. True B False Luther and Lexi are married and file a joint return. Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer’s cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided Luther and Lexi with a written acknowledgment of their donation. They contributed $20 in cash to a fundraiser for a local child’s cancer treatments. They also donated clothing in good condition with fair market value of $100 to Goodwill. They have a receipt for the donation.
  • 6. Luther and Lexi are U.S. citizens with valid Social Security numbers. They do not have enough expenses to itemize their deductions. 8. How much of Luther and Lexi’s charitable donations are deductible on their federal return? $________. Kendall is single and has no dependents. He is a self-employed rideshare driver for Widget Ride Share. Kendall provided a statement from the ride share company that indicated the amount of mileage driven and fees paid for the year. These fees are considered ordinary and necessary for the ride share business: 42,157 miles driven while transporting customers Ride share fee: $2,000 Airport fee: $365 GPS device fee: $120 His recordkeeping application shows he also drove 4,873 miles between rides and 2,134 miles driven between his home and his first and last customer of the day. Kendall started using his car for business on September 1, 2019. He kept receipts showing he spent $150 on tolls and $2,761 on gasoline.
  • 7. Kendall also provided the Form 1099-NEC and Form 1099-K that he received from Widget. See Form 1099-NEC and Form 1099-K included with this scenario. Kendall tested positive for COVID-19 and was required to self- quarantine from April 6 through April 24. As a result, he could not work during that time. 9. What is Kendall’s total self-employment expense? $________.