Tom and Linda are married taxpayers who file a joint return.
They have itemized deductions of $11,950 and four exemptions. Assuming an
adjusted gross income of $40,000.00 what is their taxable income for 2011?
Compute Marie’s taxable income for 2011, assuming she is
single and claims two dependent children. Her adjusted gross income is $70,000,
and she has itemized deductions of $9,000.
Compute Stanley’s taxable income for 2011, assuming he has
$1,000 in wages from working in a grocery store and $2,000 in interest income
from some bonds he owns. Stanley, age 16, is claimed as a dependent on his
Mr. Z, a non-dealer, sold assets on an installment plan.
Determine Mr. Z’s gross income for 2011. Relevant data include:
Bill is a cash-basis,
calendar-year taxpayer. Which of the following December items result in gross
income or deductions for the current year?
a. Check received for
December rent, $700, not deposited until January 4
b. Check for $1,100 to pay Bill’s state
income taxes mailed December 28, cashed January 7
c. Cash received in the amount of $500 for
services to be rendered the following year
d. Interest of $800 credited to his savings
account, added to Bill’s account balance
e. Check received for January rent, $700,
deposited on January 9
f. Charitable contribution of $300, charged
on Bill’s MasterCard
g. Bills totaling $2,000 sent for services
rendered during the year, uncollected as of year-end