Question

Matt and Becky are both 66 years of age. Matt still works and earned $38,000 last...

Matt and Becky are both 66 years of age. Matt still works and earned $38,000 last year. Matt and Becky also have the following income: Interest income $2,000 Social security benefits 9,000 Determine their taxable income and tax liability.

Homework Answers

Answer #2

Solution:

Wages =$38,000

Intrigue pay =$2,000

half government disability benefits =$4,500

Temporary salary = $44,500($38,000+$2,000+$4,500)

Since temporary salary surpasses the edge furthest reaches of $44000, Matt and Beckyare subject to a more noteworthy part of standardized savings benefits being incorporated into AGI.

A. $9,000 x 85 %

= $7,650

B. [($44,500 - $44,000)] x 85% + $4,500

= $4,925

Matt and Becky must incorporate $4,925 of their government managed savings benefits in AGI.

Their Taxable income is figured as pursues:

AGI ($38,000 + $2,000 + $4,925)

= $44,925

Less: Standard derivation ($12,200 +$2,400)

= - 14,600

Individual exception

= - 7,800

Taxable income =$22,525

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Matt and Becky are both 66 years of age. Matt still works and earned $38,000 last...
Matt and Becky are both 66 years of age. Matt still works and earned $38,000 last year. Matt and Becky also have the following income: Interest income $2,000 Social security benefits 9,000 Determine their taxable income and tax liability.
Matt and Meg Comer are married. They do not have any children. Matt works as a...
Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $65,000. Meg works part-time at the same university. She earns $39,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). What is the Comers’ tax liability for 2019 if they report the following capital...
Matt and Meg Comer are married. They do not have any children. Matt works as a...
Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $65,000. Meg works part-time at the same university. She earns $41,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). What is the Comers’ tax liability for 2020 if they report the following capital...
Matt and Meg Comer are married. They do not have any children. Matt works as a...
Matt and Meg Comer are married. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,000. Meg works part-time at the same university. She earns $21,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). Assume they file a joint return. (Use the tax rate schedules.) What is the...
Jack (69) and Kendra (67) are married and will file a joint return. During the year,...
Jack (69) and Kendra (67) are married and will file a joint return. During the year, Jack received $9,000 in social security benefits, and Kendra received $28,000 in benefits. In addition, the couple earned $2,000 in interest income, and Jack, a retired military officer, received pension benefits totaling $73,000. How much, if any, of the couple's social security benefits are taxable? 100%. 85%. 50%. None of their benefits are taxable.
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for...
George and Weezy received $30,200 of Social Security benefits this year ($12,000 for George; $18,200 for Weezy). George also received $5,000 from WalMart where he works a greeter. What amount of the Social Security benefits must George and Weezy include in their gross income if: i. George and Weezy file married joint and receive $30,000 of dividend income from stocks owned by George? ii. What is their taxable income if George is age 66 and Weezy is age 64? Note:...
. In 2018, Max is 85 years of age and single. He received Social Security payments...
. In 2018, Max is 85 years of age and single. He received Social Security payments totaling $14,000 (this includes Medicare premium of $600), dividend and interest income of $21,000, a pension of $30,000 and a taxable IRA benefits of $16,000. What is Max's adjusted gross income for 2018? What is his taxable income? What is his tax owed?
Maxine Gray is single and over 65 years old. She received the following in 2020: Interest...
Maxine Gray is single and over 65 years old. She received the following in 2020: Interest from certificates of deposit $ 6,000 Tax-exempt interest 9,000 Taxable dividends 8,000 Taxable pension 20,000 Social Security benefits 14,000 Required: Determine the taxable amount of Ms. Gray’s Social Security benefits. You must show all supporting computations to earn full credit.
For the TAX YEAR 2018, Robert and Serena received in social security $36000. In addition to...
For the TAX YEAR 2018, Robert and Serena received in social security $36000. In addition to their social security benefits, they had earned income of $66250 and interest income of $50. Their state refund from 2017 was $600. They had a deduction for AGI of $2000. 1. Determine the amount of taxable social security benefits. Use the 1040 worksheet. 2. Determine the Adjusted Gross Income. 3. Determine the standard or itemized deduction amount based on the following info A. Medical...
Mayra, age 67, is single with one familial dependent and has the following for the calendar...
Mayra, age 67, is single with one familial dependent and has the following for the calendar year 2019: RECEIPTS FOR YEAR Salary as Business Consultant (part-time)                                                                       $ 39,200 Interest from Friendly Bank                                                                                                  5,436 Interest from City of Chula Vista bonds                                                  2,000 Social Security benefits     25,000 EXPENDITURES FOR YEAR Contribution to IRA    4,920 Itemized deductions    19,600 Mayra claims one $500 dependency credit. How much are Mayra’s adjusted gross income, taxable income and gross tax? Show your work! AGI...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT