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These questions are tax accounting! Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $84,000 to
These questions are tax accounting!
Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $84,000 to her employer's qualified pension fund. She elects to receive her retirement benefits as an annuity of $8,400 per month for the remainder of her life. The number of anticipated monthly annuity payments from the IRS table is 210. Question Assume that Pam dies after collecting 160 payments. She collected eight payments in the year of her death. What are Pam's gross income and deductions from the annuity contract in the year of her death? Gross income $64000 Loss Deduction $ _____?_____ Linda and Don are married and file a joint return. In 2013, they received $12,000 in Social Security benefits and $35,000 in taxable pension benefits and interest. The applicable two bases for Social Security computations for married filing jointly are $32,000 and $44,000. a. The couple's adjusted gross income on a joint return is $ __________ b. Don would like to know whether they should sell for $100,000 (at no gain or loss) a corporate bond that pays 8% in interest each year and use the proceeds to buy a $100,000 nontaxable State of Virginia bond that will pay $6,000 in interest each year. With a 15% marginal tax rate, their aftertax economic income will decrease by _________? c. In the preceding situation (a), if Linda works parttime and earns $30,000, by how much would Linda and Don's adjusted gross income increase? ______________? Social Security Benefits Melissa, who is 70 years old, is unmarried and has no dependents. Her annual income consists of a taxable pension of $17,000, $14,000 in Social Security benefits, and $3,000 of dividend income. She does not itemize her deductions. She is in the 15% marginal income tax bracket. She is considering getting a part-time job that would pay her $5,000 a year. The applicable two bases for Social Security computations for Melissa are $25,000 and $34,000. Qa) What would be Melissa's after-tax income from the part-time job, considering Social Security and Medicare tax (use 7.65%) as well as Federal income tax on the earnings of $5,000? (Round your intermediate computations and final answer to the nearest dollar.) Qb) What would be Melissa's after-tax income from the part-time job, considering Social Security and Medicare tax (use 7.65%) as well as Federal income tax on the earnings of $5,000? (Round your intermediate computations and final answer to the nearest dollar.)Step by Step Solution
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