Question
Jack and Jill Wells had the following items of income in 2021. Jack is 63 and Jill is 65. Interest on savings account $850 Interest
Jack and Jill Wells had the following items of income in 2021. Jack is 63 and Jill is 65.
Interest on savings account $850
Interest on municipal bonds $625
Jill:
Social Security payments $6,000
Wages from ABC Corp. $12,000
Life-time, purchased for $25,000. In January, Jill will receive $200 per month for the length of her life. (Determine how much must be included in her income.)
Jack:
Wages from ABC Corp. $30,000
Compensatory damages as a result of inadvertent
poisoning at a local restaurant. $10,000
Cash allowance to pay for meals during work hours $500
Payments by ABC to his qualified pension plan $1,000
ABC Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of Jack Wells, vice-president. Jack has paid $50 toward the cost of the insurance.
Compute their taxable income.
Compute their tax liability.
Jack and Jill Wells calculations
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