ACC 401 Week 4
ACC 401 Week 4 Quiz Assignment Tax Credits and Deductions. From Chapter 9, complete Problem 42 and problem 49. From Chapter 10, complete problem 49 and problem 57. From Chapter 11, complete problem 49 and problem 52. Chapter 9, complete Problem 42 and problem 49 42. Tim and Martha paid $7,900 in qualified employment-related expenses for their three young children who live with them in their household. Martha received $1,800 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $57,000 of AGI earned equally by Tim and Martha. What amount of child and dependent care tax credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $36,000 that was earned entirely by Tim? 49. Jeremy and Celeste paid the following for their daughter, Alyssa, to attend University of Colorado, during 2010. Alyssa was in her first year of college and attended full-time:
Tuition and fees (for fall semester 2010) $1,950 Tuition and fees (for spring semester 2011) 1,000 Books 600 Room and board 1,200 The spring semester at University of Colorado begins in January. In addition to the above, Alyssas uncle Devin sent $800 as payment for her tuition directly to the University. Jeremy and Celeste have modified AGI of $165,000. What is the amount of qualifying expenses for purposes of the American Opportunity Tax credit (AOTC)? What is the amount of the AOTC that Jeremy and Celeste can claim based on their AGI? Chapter 10, complete problem 49 and problem 57 49. Allison is paid $470 per week. What is the amount of federal income tax withheld from Allisons paycheck under the following conditions? Use the percentage method table in the appendix to this chapter.
a. Allison is single and claims three withholding allowances b. Allison is married and claims three withholding allowances c. Allison is single and claims one withholding allowance.
57. Jones Company has the following employees on payroll:
Semimonthly Withholding Marital Payroll Allowances Status Heather $4,500 4 Married Keith $4,800 3 Married Thad $2,000 1 Single Abbie $3,500 2 Single
Calculate the payroll for the last pay period in April. Include in your calculations federal withholding, social security and Medicare taxes. Chapter 11, complete problem 49 and problem 52 49. Will, who is single and under age 50, is employed as a full-time tax accountant at a local manufacturing company where he earns $60,000 per year. He participates in a pension plan through his employer. Will also operates a small tax practice in his spare time during tax season and has net Schedule C income of $8,000. He is interested in establishing and contributing to other retirement plans. What options are available to Will? 52. Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $30,000 per year and each drafter earns $40,000. Kens net earnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $305,000. Ken is considering whether to establish an SEP plan and has a few questions. a) Is he eligible to establish an SEP plan? b) Is he required to cover his employees under the plan? Why or why not? c) If his employees must be covered, what is the maximum amount that can be contributed on their behalf? d) If the employees are not covered, what is the maximum amount Ken can contribute for himself? e) If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint: Calculate the employee amounts first.) Ignore any changes in Kens self-employment tax.
Discussion Questions Tax Credits and Payroll Taxes. From Chapter 9, complete questions 3 and 7, and problem 43. From Chapter 10, complete question 1 and question 7. Chapter 9, complete questions 3 and 7, and problem 43 3. For purposes of the tax credit for child and dependent care expenses, explain the limitations concerning the amount of qualified expenses that can be used to calculate the credit. 7. Explain what qualifies as education expenses for the purposes of educational tax credits. 43. Adrienne is a single mother with a 6-year-old daughter who lived with her during the entire year. Adrienne paid $2,900 in child care expenses so that she would be able to work. Of this amount, $500 was paid to Adriennes mother whom Adrienne cannot claim as a dependent. Adrienne earned $1,900 from her job as a freelance writer and received alimony payments of $21,000 from her ex-husband. What amount, if any, of child and dependent care tax credit can Adrienne claim? Chapter 10, complete question 1 and question 7 1. What type of compensation is subject to employer withholding? 7. When are employees required to report tips to their employer? Are tips subject to the same withholding requirements as regular salary?
Payroll Taxes and Retirement Plans. From Chapter 10, complete questions 12 and 13. From Chapter 11, complete question 5, question 15, and question 19. Chapter 10, complete questions 12 and 13 12. What are the penalties for not making timely payroll deposits? 13. If a business fails to make payroll deposits, who is held responsible?
Chapter 11, complete question 5, question 15, and question 19 5. What are the differences between a defined-benefit pension plan and a defined-contribution pension plan? 15. Briefly discuss the conditions necessary for a taxpayer to be permitted to make tax-deductible contributions to a traditional IRA. 19. Anne, a single taxpayer under age 50, has wage income of $74,000 and is not covered under a retirement plan by her employer. She would like to start a retirement plan if possible. What options are available to her?
Excerpt from file: Week 4 DQ 1 - Tax Credits and Payroll Taxes - ACC401 Federal Income Taxes I ACC 401 Tax Credits and Payroll Taxes. From Chapter 9, complete questions 3 and 7, and problem 43. From Chapter 10, complete question 1 and question 7. Chapter 9, complete questions 3 and 7, and problem 43 3. For purposes
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