Question
Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax
Melody and Todd are married and have employee wages of $250,000 each in 2019. They have no other income. How much additional 0.9% Medicare tax will Melody and Todd have to pay or receive as a refund when they file their 2019 income tax return?
| a. | $900 will be refunded with their return. |
| b. | $3,600 will be due with their return in addition to amounts withheld. |
| c. | $1,350 will be due with their return in addition to amounts withheld. |
| d. | $1,350 will be refunded with their return. |
The 0.9 percent Medicare tax applies to:
| a. | Tax exempt income |
| b. | IRA distributions |
| c. | Earned income |
| d. | Gain on the sale of a principal residence |
The 3.8 percent ACA Medicare tax does not apply to:
| a. | Wages |
| b. | Interest |
| c. | Capital gains |
| d. | Dividends |
Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Toms 2019 income tax liability?
| a. | None of these |
| b. | $260 |
| c. | $370 |
| d. | $0 |
| e. | $459 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started