Question
1. Derek and his wife Martha were in a bad car accident in December 2019. Martha unfortunately died. They had no children. What is Derek's
1. Derek and his wife Martha were in a bad car accident in December 2019. Martha unfortunately died. They had no children. What is Derek's filing status? should Derek take the standard deduction or itemize? what are his taxable deductions if he itemizes? what are his deductions if he standardize?
Dereck's gross income was $101,000 (Derek's salary $60k and Martha's salary $41k) plus insurance reimbursed for $30,000 for the value of the car that was damaged in the accident and $20,000 in life insurance payment from Martha's employer's group term life insurance plan with premiums less than $50k.
Derek has the following expenditures for 2019:
Medical Expenses (not covered by insurance): $7,200
Taxes: Property taxes on home personal resident: $3,600
Taxes: State of California income tax $4,200
Interest on home mortgage $6,000
Charitable contributions $3,600
Traffic fines $400
Contribution to Republican Party $500
Funeral expenses for his wife's ceremony $6,300
2. Same facts as Question 4 but Derek and Martha have a 15 year old son, named Robert who lives with them full time.
Using the information above what is Derek's tax liability due for 2019?
after any applicable tax credits and use the tax rate table for 2019 based on Derek's filing status.
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