In late 2017, Randy and Rachel Erwin paid $7,000 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. In 2018, the year in which the adoption becomes final, they pay an additional $8,000. Their AGI is $135,000.
Three of these individuals receive wages of $8,500 during 2018, and each individual works more than 400 hours during the year. The other three individuals work 300 hours and receive wages of $5,000 during the year.
Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. The couple paid $12,000 of tuition and $10,000 for room and board for Dante (a freshman). Dante is a full-time student. Determine the amount of the American Opportunity Credit for the year.
Taxable income for an individual is generally defined as#N#A) AGI reduced by itemized deductions and tax credits.#N#B) gross income reduced by itemized deductions.#N#C) AGI reduced by tax credits.#N#D) AGI reduced by the greater of the standard deduction or itemized deductions.
Husband and wife, who live in a common law state, are eligible to file a joint return for 2019, but elect to file separately. Wife has adjusted gross income of $25,000 and has $2,200 of expenditures which qualify as itemized deductions. Husband deducts itemized deductions of $14,200.
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, 18, as dependents. Their adjusted gross income for 2018 is $105,300. What is Russ and Linda's total child and other dependent credit for 2018?
Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax exempt income. She did not have minimum coverage or 8 months in 2018. Compute Susan's individual shared responsibility payment for 2018.
Answer: $1,800. Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her AGI for the year is $18,500, calculate Clarita's child and dependent care credit for 2018.
Martha and Lew are married taxpayers with $400 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $400 as a foreign tax credit. Their tax bracket is 24% and they itemize deductions.
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, 18, as dependents. Their adjusted gross income for 2018 is $105,300.