Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018. $80,000 3,000 2,000 2,200 200,000 Salary Interest on bonds issued by City of Boston Interest on CD issued by Wells Fargo Bank Cash dividend received on Chevron common stock Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) Inheritance received upon death of aunt Jackson (a cousin) repaid a loan Aiden made to him in 2014 (no interest was provided for) Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) Age 100,000 5,000 9,700 3 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Taxable Taxable Cash dividend received on Chevron common stock Salary Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inheritance received upon the death of his aunt Proceeds from repayment of a loan Taxable Not taxable Taxable Not taxable Not taxable b. What is Aiden's filing status? Surviving spouse C. Should Aiden itemize his deductions or take the standard deduction? He should itemize his deductions. d. Aiden's taxable income in 2020 is $ Compute the taxable income for 2020 in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: itemized deductions Taxable income b. Sybil, age 40, is single and supports her dependent parents who live with her, as well as her grandfather who is in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000. AGI $80,000 Less: standard deduction Taxable income C. Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $10,100. AGI $75,000 Less: itemized deductions Taxable income d. Amelia, age 33, is an abandoned spouse who maintains a household for her three dependent children. She has AGI of $58,000 and itemized deductions of $10,650. AGI $58,000 Less: standard deduction Taxable income e. Dale, age 42, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale's dependent. Dale has AGI of $64,000 and itemized deductions of $9,900. AGI $64,000 Less: itemized deductions Taxable income For tax year 2020, determine the number of dependents in each of the following independent situations. For example: 0, 1, 2, 3, and so on. Dependents a. Leo and Amanda (ages 48 and 46, respectively) are husband and wife and furnish more than 50% of the support of their two children, Elton (age 18) and Trista (age 24). During the year, Elton earns $4,500 providing transportation for elderly persons with disabilities, and Trista receives a $5,000 scholarship for tuition at the law school she attends. b. Audry (age 45) was divorced this year. She maintains a household in which she, her ex- husband (Clint) and his mother (Olive) live and furnishes more than 50% of their support. Olive is age 91 and blind. c. Crystal, age 45, furnishes more than 50% of the support of her married son, Andy (age 18), and his wife, Paige (age 19), who live with her. During the year, Andy earned $8,700 from a part-time job. All parties live in Iowa (a common law state). (Assume the joint return test rule does not apply.) d. Assume the same facts as in part (c), except that all parties live in Washington (a community property state). Analyze each of the characteristics in considering the indicated test for dependency as a qualifying child or qualifying relative. In the last two columns, after each listed test (e.g., gross income), select from the dropdown whether the particular test is Met, Not Met, or Not Applicable (NA). Characteristic Qualifying Child Test Qualifying Relative Test a. Taxpayer's son has gross income of Gross income - Met Gross income - Met $7,000. b. Taxpayer's niece has gross income of $3,000. Gross income - Not Met Gross income - Not Met c. Taxpayer's uncle lives with him. Relationship - Not Applicable Relationship - Not Applicable d. Taxpayer's daughter is 25 and disabled. Age - Met Age - Not Met Gross income - Not Applicable e. Taxpayer's daughter is age 18, has gross income of $8,000, and does not live with him. Residence - Met Gross income - Not Met f. Taxpayer's cousin does not live with her. Relationship - Relationship - Not Applicable Residence - Residence - g. Taxpayer's brother does not live with her. Relationship - Relationship - h. Taxpayer's sister has dropped out of school, is age 17, and lives with him. Relationship - Residence - Age - Relationship - i. Taxpayer's older nephew is age 23 and a full-time student. Relationship - Age - j. Taxpayer's grandson lives with her and has gross income of $7,000. Relationship - Residence - Relationship - Gross income Determine the amount of the standard deduction allowed for 2020 in the following independent situations. In each case, assume that the taxpayer is claimed as another person's dependent. Amount of the Standard Deduction a. Curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $12,600 from repairing cars. b. Mattie, age 18, has income as follows: $600 cash dividends from a stock investment and $4,700 from handling a paper route. C. Jason, age 16, has income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence. d. Ayla, age 15, has income as follows: $400 cash dividends from a stock investment and $500 from grooming pets. e. Sarah, age 67 and a widow, has income as follows: $500 from a bank savings account and $3,200 from babysitting. Ill The following information applies to Emily for 2020. Her filing status is single. $85,000 1,100 6,000 6,000 Salary Interest income from bonds issued by Xerox Alimony payments received (divorce occurred in 2014) Contribution to traditional IRA Gift from parents Short-term capital gain from stock investment Amount lost in football office pool (gambling loss) Age 25,000 2,500 500 40 Emily has no gambling winnings this year. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Emily. Salary Gift from parents Alimony payments received Short-term capital gain from stock investment Interest income from bonds issued by Xerox Identify whether the items are deductible (fully or partially) by Emily. Amount lost in football office pool Contribution to a traditional IRA Emily's taxable income in 2020 is $ Compute the taxable income for 2020 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2018. $80,000 3,000 2,000 2,200 200,000 Salary Interest on bonds issued by City of Boston Interest on CD issued by Wells Fargo Bank Cash dividend received on Chevron common stock Life insurance proceeds paid upon death of aunt (Aiden was the designated beneficiary of the policy) Inheritance received upon death of aunt Jackson (a cousin) repaid a loan Aiden made to him in 2014 (no interest was provided for) Itemized deductions (state income tax, property taxes on residence, interest on home mortgage, and charitable contributions) Number of dependents (children, ages 17 and 18, and mother-in-law, age 70) Age 100,000 5,000 9,700 3 43 Click here to access the standard deduction table to use, if required. a. Indicate whether the items are taxable or not taxable to Aiden. Taxable Taxable Cash dividend received on Chevron common stock Salary Interest on bonds issued by City of Boston Life insurance proceeds Interest on a CD issued by Wells Fargo Bank Inheritance received upon the death of his aunt Proceeds from repayment of a loan Taxable Not taxable Taxable Not taxable Not taxable b. What is Aiden's filing status? Surviving spouse C. Should Aiden itemize his deductions or take the standard deduction? He should itemize his deductions. d. Aiden's taxable income in 2020 is $ Compute the taxable income for 2020 in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: itemized deductions Taxable income b. Sybil, age 40, is single and supports her dependent parents who live with her, as well as her grandfather who is in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000. AGI $80,000 Less: standard deduction Taxable income C. Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $10,100. AGI $75,000 Less: itemized deductions Taxable income d. Amelia, age 33, is an abandoned spouse who maintains a household for her three dependent children. She has AGI of $58,000 and itemized deductions of $10,650. AGI $58,000 Less: standard deduction Taxable income e. Dale, age 42, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale's dependent. Dale has AGI of $64,000 and itemized deductions of $9,900. AGI $64,000 Less: itemized deductions Taxable income For tax year 2020, determine the number of dependents in each of the following independent situations. For example: 0, 1, 2, 3, and so on. Dependents a. Leo and Amanda (ages 48 and 46, respectively) are husband and wife and furnish more than 50% of the support of their two children, Elton (age 18) and Trista (age 24). During the year, Elton earns $4,500 providing transportation for elderly persons with disabilities, and Trista receives a $5,000 scholarship for tuition at the law school she attends. b. Audry (age 45) was divorced this year. She maintains a household in which she, her ex- husband (Clint) and his mother (Olive) live and furnishes more than 50% of their support. Olive is age 91 and blind. c. Crystal, age 45, furnishes more than 50% of the support of her married son, Andy (age 18), and his wife, Paige (age 19), who live with her. During the year, Andy earned $8,700 from a part-time job. All parties live in Iowa (a common law state). (Assume the joint return test rule does not apply.) d. Assume the same facts as in part (c), except that all parties live in Washington (a community property state). Analyze each of the characteristics in considering the indicated test for dependency as a qualifying child or qualifying relative. In the last two columns, after each listed test (e.g., gross income), select from the dropdown whether the particular test is Met, Not Met, or Not Applicable (NA). Characteristic Qualifying Child Test Qualifying Relative Test a. Taxpayer's son has gross income of Gross income - Met Gross income - Met $7,000. b. Taxpayer's niece has gross income of $3,000. Gross income - Not Met Gross income - Not Met c. Taxpayer's uncle lives with him. Relationship - Not Applicable Relationship - Not Applicable d. Taxpayer's daughter is 25 and disabled. Age - Met Age - Not Met Gross income - Not Applicable e. Taxpayer's daughter is age 18, has gross income of $8,000, and does not live with him. Residence - Met Gross income - Not Met f. Taxpayer's cousin does not live with her. Relationship - Relationship - Not Applicable Residence - Residence - g. Taxpayer's brother does not live with her. Relationship - Relationship - h. Taxpayer's sister has dropped out of school, is age 17, and lives with him. Relationship - Residence - Age - Relationship - i. Taxpayer's older nephew is age 23 and a full-time student. Relationship - Age - j. Taxpayer's grandson lives with her and has gross income of $7,000. Relationship - Residence - Relationship - Gross income Determine the amount of the standard deduction allowed for 2020 in the following independent situations. In each case, assume that the taxpayer is claimed as another person's dependent. Amount of the Standard Deduction a. Curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $12,600 from repairing cars. b. Mattie, age 18, has income as follows: $600 cash dividends from a stock investment and $4,700 from handling a paper route. C. Jason, age 16, has income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence. d. Ayla, age 15, has income as follows: $400 cash dividends from a stock investment and $500 from grooming pets. e. Sarah, age 67 and a widow, has income as follows: $500 from a bank savings account and $3,200 from babysitting. Ill The following information applies to Emily for 2020. Her filing status is single. $85,000 1,100 6,000 6,000 Salary Interest income from bonds issued by Xerox Alimony payments received (divorce occurred in 2014) Contribution to traditional IRA Gift from parents Short-term capital gain from stock investment Amount lost in football office pool (gambling loss) Age 25,000 2,500 500 40 Emily has no gambling winnings this year. Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Emily. Salary Gift from parents Alimony payments received Short-term capital gain from stock investment Interest income from bonds issued by Xerox Identify whether the items are deductible (fully or partially) by Emily. Amount lost in football office pool Contribution to a traditional IRA Emily's taxable income in 2020 is $