Specifically how much dependent tax is

14 Taxation of Thaividuals $4,000 and the De and min: exp: Han Bruce has been promoted to regional manager, $88,000. He estimates that state income tax withheld will increase by $4.000 Social Security tax withheld will be $5,456. Alice, who has been diagnosed with a serious illness, will take a leave from work during 2019. The estimated cost for her medical treatment is $13 which $6,400 will be reimbursed by their insurance company in 2019. Their insurance premium will increase to $9,769. Property taxes on their resid expected to increase to $5,100. The Byrds' home mortgage interest ex charitable contributions are expected to be unchanged from the prior ve John will graduate from college in December 2018 and will take a lo York City in January 2019. His starting salary will be $46,000. Assume that all of the information reported in 2018 will be the same unless other information has been presented. ave of absence s $15.400,00 Their medical residence are est expense and a job in New Hom Inter Inter In beis was its e the same in 2019 spectively, who Avenue, Carmel, IN Donna is a teacher at $2,0 med 2. Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively file a joint return for 2018. The Deckers live at 1121 College Avenue, Carm 46032. Paul is an assistant manager at Carmel Motor Inn, and Donna is a ten Carmel Elementary School. They present you with W-2 forms that reflect the lowing information: file the paid Paul the all Salary Donna $56,000 6,630 1,100 4,284 123-45-6789 $68,000 6,770 1,400 5,202 111-11-1112 Federal tax withheld State income tax withheld , FICA (Social Security and Medicare) withheld Social Security numbers Real Sale Con App Refu Donna is the custodial parent of two children from a previous marriage who reside with the Deckers through the school year. The children, Larry and Jane Parker, reside with their father, Bob, during the summer. Relevant information for the children follows: Co tax cre Larry Jane 17 Age 123-45-6788 123-45-6787 Social Security numbers 9 Months spent with Deckers Under the divorce decree, Bob pays child support of $150 per month per child during the nine months the children live with the Deckers. Bob says that he spends $200 per month per child during the three summer months they reside with him. Donna and Paul can document that they provide $2,000 of support per child per year. The divorce decree is silent as to which parent can claim the exemptions.com the children. In August, Paul and Donna added a suite to their home to provide more fortable accommodations for Hannah Snyder (Social Security number 123-474 Donna's mother, who had moved in with them in February 2017 after the a Donna's father. Not wanting to borrow money for this addition, Paul sold 30 of Acme Corporation stock for $50 per share on May 3, 2018, and used the of $15,000 to cover construction costs. The Deckers had purchased the April 29, 2013, for $25 per share. They received dividends of $750 on owned stock a month before the sale. Hannah, who is 66 years old, received $7,500 in Social Security bene the year, of which she gave the Deckers $2,000 to use toward household alter the death of ul sold 300 shares sed the proceeds Sed the stock on (50 on the jointly rity benefits during Pusehold expenses CHAPTER 10 Individuals: Income, Deductions, and Credits nd deposited the remainder in her personal savings account. The Deckers deter- ne that they have spent $2,500 of their own money for food, clothing, medical enses, and other items for Hannah. They do not know what the rental value of Hannah's suite would be, but they estimate it would be at least $300 per month. Interest paid during the year included the following: Home mortgage interest (paid to Carmel Federal Savings and Loan) $7,890 Interest on an automobile loan (paid to Carmel National Banki 1,660 Interest on Citibank Visa card 620 In July, Paul hit a submerged rock while boating. Fortunately, he was uninjured after being thrown from the boat and landing in deep water. However, the boat, which was uninsured, was destroyed. Paul had paid $25.000 for the boat in June 2017, and its value was appraised at $18,000 on the date of the accident. The Deckers paid doctor and hospital bills of $10.700 and were reimbursed $2,000 by their insurance company. They spent $640 for prescription drugs and medicines and $5,904 for premiums on their health insurance policy. They have filed additional claims of $1,200 with their insurance company and have been told they will receive payment for that amount in January 2019. Included in the amounts paid for doctor and hospital bills were payments of $380 for Hannah and $850 for the children. All members of the Decker family had health insurance coverage for all of 2018 Additional information of potential tax consequence follows: Real estate taxes paid $6,850 Sales taxes paid (per table) 1,379 Contributions to their church 2,600 Appraised value of books donated to public library 1740 Refund of state income tax for 2017 (the Deckers itemized on their 2017 Federal tax return) 1,520 Compute net tax payable or refund due for the Deckers for 2018. Ignore the child tax credit in your computations. If the Deckers have overpaid, the amount is to be credited toward their taxes for 2019. BRIDGE DISCIPLINE George comes to you asking for your advice. He wants to invest $10,000 either in a debt security or in an equity investment. His choices are shown below. Redbreast Corporation bond, annual coupon rate of 7.5%. uhy of Philadelphia general obligation bond, coupon rate of 6.0%. Blue Corporation 7,5% preferred stock (produces qualified dividend income). 14 Taxation of Thaividuals $4,000 and the De and min: exp: Han Bruce has been promoted to regional manager, $88,000. He estimates that state income tax withheld will increase by $4.000 Social Security tax withheld will be $5,456. Alice, who has been diagnosed with a serious illness, will take a leave from work during 2019. The estimated cost for her medical treatment is $13 which $6,400 will be reimbursed by their insurance company in 2019. Their insurance premium will increase to $9,769. Property taxes on their resid expected to increase to $5,100. The Byrds' home mortgage interest ex charitable contributions are expected to be unchanged from the prior ve John will graduate from college in December 2018 and will take a lo York City in January 2019. His starting salary will be $46,000. Assume that all of the information reported in 2018 will be the same unless other information has been presented. ave of absence s $15.400,00 Their medical residence are est expense and a job in New Hom Inter Inter In beis was its e the same in 2019 spectively, who Avenue, Carmel, IN Donna is a teacher at $2,0 med 2. Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively file a joint return for 2018. The Deckers live at 1121 College Avenue, Carm 46032. Paul is an assistant manager at Carmel Motor Inn, and Donna is a ten Carmel Elementary School. They present you with W-2 forms that reflect the lowing information: file the paid Paul the all Salary Donna $56,000 6,630 1,100 4,284 123-45-6789 $68,000 6,770 1,400 5,202 111-11-1112 Federal tax withheld State income tax withheld , FICA (Social Security and Medicare) withheld Social Security numbers Real Sale Con App Refu Donna is the custodial parent of two children from a previous marriage who reside with the Deckers through the school year. The children, Larry and Jane Parker, reside with their father, Bob, during the summer. Relevant information for the children follows: Co tax cre Larry Jane 17 Age 123-45-6788 123-45-6787 Social Security numbers 9 Months spent with Deckers Under the divorce decree, Bob pays child support of $150 per month per child during the nine months the children live with the Deckers. Bob says that he spends $200 per month per child during the three summer months they reside with him. Donna and Paul can document that they provide $2,000 of support per child per year. The divorce decree is silent as to which parent can claim the exemptions.com the children. In August, Paul and Donna added a suite to their home to provide more fortable accommodations for Hannah Snyder (Social Security number 123-474 Donna's mother, who had moved in with them in February 2017 after the a Donna's father. Not wanting to borrow money for this addition, Paul sold 30 of Acme Corporation stock for $50 per share on May 3, 2018, and used the of $15,000 to cover construction costs. The Deckers had purchased the April 29, 2013, for $25 per share. They received dividends of $750 on owned stock a month before the sale. Hannah, who is 66 years old, received $7,500 in Social Security bene the year, of which she gave the Deckers $2,000 to use toward household alter the death of ul sold 300 shares sed the proceeds Sed the stock on (50 on the jointly rity benefits during Pusehold expenses CHAPTER 10 Individuals: Income, Deductions, and Credits nd deposited the remainder in her personal savings account. The Deckers deter- ne that they have spent $2,500 of their own money for food, clothing, medical enses, and other items for Hannah. They do not know what the rental value of Hannah's suite would be, but they estimate it would be at least $300 per month. Interest paid during the year included the following: Home mortgage interest (paid to Carmel Federal Savings and Loan) $7,890 Interest on an automobile loan (paid to Carmel National Banki 1,660 Interest on Citibank Visa card 620 In July, Paul hit a submerged rock while boating. Fortunately, he was uninjured after being thrown from the boat and landing in deep water. However, the boat, which was uninsured, was destroyed. Paul had paid $25.000 for the boat in June 2017, and its value was appraised at $18,000 on the date of the accident. The Deckers paid doctor and hospital bills of $10.700 and were reimbursed $2,000 by their insurance company. They spent $640 for prescription drugs and medicines and $5,904 for premiums on their health insurance policy. They have filed additional claims of $1,200 with their insurance company and have been told they will receive payment for that amount in January 2019. Included in the amounts paid for doctor and hospital bills were payments of $380 for Hannah and $850 for the children. All members of the Decker family had health insurance coverage for all of 2018 Additional information of potential tax consequence follows: Real estate taxes paid $6,850 Sales taxes paid (per table) 1,379 Contributions to their church 2,600 Appraised value of books donated to public library 1740 Refund of state income tax for 2017 (the Deckers itemized on their 2017 Federal tax return) 1,520 Compute net tax payable or refund due for the Deckers for 2018. Ignore the child tax credit in your computations. If the Deckers have overpaid, the amount is to be credited toward their taxes for 2019. BRIDGE DISCIPLINE George comes to you asking for your advice. He wants to invest $10,000 either in a debt security or in an equity investment. His choices are shown below. Redbreast Corporation bond, annual coupon rate of 7.5%. uhy of Philadelphia general obligation bond, coupon rate of 6.0%. Blue Corporation 7,5% preferred stock (produces qualified dividend income)