Camille Sikorski was divorced last year. She currently owns and provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camille%u2019s home for the entire year and Camille paid for all the costs of the maintaining the home. She received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account. She also received $10,000 of alimony from her former husband. Finally, Camille paid $5,000 of expenditures that qualified as itemized deductions. Compute Taxable Income and Tax Liability.
Geneva and Ryan Workman reside with their son, Steve, who is a 20-year-old undergraduate student at State University. Steve earned $13,100 at a part-time summer job, but he deposited this money in a savings account for graduate school. Geneva paid all of the $12,000 cost of supporting Steve. Geneva worked part-time for a local nursery school and earned $19,000. Ryan worked as a mechanical engineer and was paid a salary of $95,000. Ryan also paid for the family health insurance through his employer. His employer paid $5,000 and Ryan contributed $6,000 from his salary to cover all three of them. The family had the following expenses attributable to their personal residence: mortgage interest $8,600, real estate taxes $2,900 and income taxes of $900. Compute taxable income and the tax liability for the Workmans.
Frank is single and supports his 17-year-old brother, Bill. Bill earned $3,000 and lived with Frank during the year. Frank works as a consultant and operates his business from his home. He was paid $150,000 for various consulting jobs during the year. All expenses were paid by his clients. Frank also contributed to a SIMPLE retirement plan in the amount of $11,500 for the year. Frank does not own a home but had charitable contributions of $2,000 for the year in addition to the support paid on behalf of his brother. Compute taxable income and the tax liability for Frank.
Sally is 12 and has received interest income from investments of $3,000 for the year. She has no other income and her parents claim her as a dependent. Compute Sally%u2019s taxable income and tax liability. Her parents%u2019 marginal rate is 28%.
Sally is age 12 and has received interest income from investments of $3,000 and earned $1,400 for providing babysitting services. She lives with her parents and they claim her as a dependent. Her parents%u2019 marginal rate is 28%.
Sally is age 20 and is attending school full-time to become a nurse. She had $3,000 of interest income and $7,000 from a part-time job that she used to help pay for living expenses while attending school. Her parents would like to claim her as a dependent. Her parents%u2019 marginal rate is 28%.