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Homework answers / question archive / Task 2 Income, commissions, exclusions and schedule Instructions Read, study and analyze the presentation of this module 2 on the topic of gross income

Task 2 Income, commissions, exclusions and schedule Instructions Read, study and analyze the presentation of this module 2 on the topic of gross income

Accounting

Task 2 Income, commissions, exclusions and schedule

Instructions

Read, study and analyze the presentation of this module 2 on the topic of gross income.

Then, examine the five cases below and do the following for each one:

Calculate the gross income.

Determine how income taxes should be filed in each case, according to the marital status and conditions of each taxpayer.

Find your adjusted gross income.

Mention the exemptions to which the taxpayer is entitled and the corresponding amount.

Visit the section of returns, forms and annexes of the Department of the Treasury; Identify and complete the corresponding annexes for each case.

 

Case 1: Luis Barreto and Carmita Correa

Luis Barreto is married and has an administrator position in a private company, for which he obtains a salary of $ 60,000 in this taxable year. In addition, he received an inheritance of $ 60,000 and $ 10,000 in interest from a cooperative of which he is a member. His wife, Carmita Correa, is disabled and receives $ 9,000 from social security. The couple have two children: Lucas, 23 years old and a university student, and Esmeralda, who is 21 years old and does not study.

 

Case 2: Noel Ramírez and Rosa Martínez

Noel Ramírez is a teacher and is married. He had a salary of $ 43,000 and a withheld contribution of $ 6,000. Noel obtained an individual retirement account (IRA) for him of $ 5,000 and received dividends of $ 10,000 from an investment made in a company. His wife, Rosa Martínez, works from home selling clothes, generating net sales of $ 25,000. Rosa had a beginning inventory of $ 6,000, made purchases for $ 2,000, had cash costs of $ 500, and her ending inventory was $ 3,000. The couple have a joint bank account, in which they received $ 8,000 in interest from the bank. They have two children in common: Betzaida, who is 23 years old and disabled, and Eugenio, who is 22 and is a full-time university student.

 

Case 3: David Vélez and Marisol Márquez

David Vélez is retired and has received a pension for two years; the first received $ 37,000 and the second, $ 36,000. He is married to Marisol Márquez, who inherited a house that he rents for $ 600 a month. They both own a clothing business and earn $ 60,000 a year. They also receive $ 7,000 of interest from the bank and dividends of $ 12,000 from an investment in a company. David won the lottery and won a $ 20,000 prize.

 

Case 4: Elizabeth Román

Elizabeth Román was born on September 30, 1981, is a secretary and is divorced. Your W2 shows a salary of $ 50,000 and a withheld contribution of $ 4,000. Elizabeth is a college student and paid $ 5,000 for her high school tuition. Her son, who was born on March 22, 2003, is a student. Elizabeth pays an IRA account for her retirement in the annual amount of $ 7,000.

 

Case 5: Noelia Cruz

Noelia Cruz, single and farmer, had net sales of $ 60,000 from the sale of bananas. He had a starting inventory of $ 30,000, had cash costs of $ 8,000, and made purchases of $ 5,000. His ending inventory was $ 15,000. Noelia has no children.

 

Task 3 Determined contribution

Instructions

This task consists of two parts with different ratings. Read the instructions for both parts carefully, as you will be performing different tasks. Module 3

 

Part 1:

Read each case carefully and, as determined in the Puerto Rico Internal Revenue Code, identify the deductions, calculate the amount of deductions and what the determined contribution would be.

Use the return for the last available taxable year and its respective schedules as a reference.

 

Case 1: Heriberto Ortiz

Heriberto Ortiz is married. He and his wife make separate contributions. Heriberto works as a carpenter and earned an income of $ 35,000; his wife is a supervisor and earned an annual salary of $ 26,000. They each paid $ 5,000 into an IRA. Heriberto is a veteran. His wife has a health condition and paid $ 4,000 in medical expenses.

 

Case 2: Jonathan and Rosalina Bermúdez

Jonathan Bermúdez is married to Rosalina Bermúdez. They both work and earn $ 25,000 a year each. They had medical expenses of $ 8,000 and paid a tithe of 10% of their gross salary; each has an IRA of $ 5,000. They made a contribution to the Red Cross of $ 2,000.

 

In both cases, determine the following:

In a separate document from the return, explain what are the deductions allowed to the taxpayer in each case and what is the amount of deductions.

Make the calculation of how much is allowed to deduct for medical expenses in each case. You must fill out the corresponding schedule.

Calculate the determined contribution. You must fill out the form to make the corresponding calculation.

 

 

Part 2:

Prepare a schedule A for the following cases:

Case 1: Rafael Rivera and Maritza Jiménez

Rafael Rivera is married and has a managerial position in a private company, where he had an income of $ 45,000 and a withholding of $ 1,200. His wife, Maritza Jiménez, is a secretary and receives a salary of $ 35,000; had a $ 550 withholding tax. The couple file returns together and have two children: a 25-year-old who is studying at the university, and a 21-year-old who does not study. Rafael has a house for which he paid $ 15,000 in mortgage interest. They had medical expenses of $ 7,000 and donated $ 500 to the Salvation Army. They belong to a church to which they paid a tithe of 10% of their gross salary.

 

Case 2: Jonathan Méndez and Josefa Castro

Jonathan Méndez is a teacher and is married. He had a salary of $ 42,000 and a withheld contribution of $ 2,500. Jonathan obtained an individual retirement account (IRA) for him of $ 5,000 and received dividends of $ 7,000 from an investment made in a company. His wife, Josefa Castro, who works as a draftsman in a company, had an income of $ 46,000. The couple have a joint bank account and receive $ 3,500 in interest from the bank. They have two children in common: Teresa, 15, and Camilo, 24, who is a full-time college student. They paid $ 14,500 of mortgage interest and medical expenses of $ 8,000. Josefa also underwent cosmetic surgery, for which she paid $ 5,000. They belong to a church to which they paid a tithe of 10% of their salary. The couple also made a donation of $ 1,000 to the municipality where they reside.

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