ST. JOHN’S UNIVERSITY
NEW YORK
THE PETER J. TOBIN COLLEGE OF BUSINESS
DEPARTMENT OF ACCOUNTING AND TAXATION
Tax 610 Individual Tax Planning Professor M. Pirrone
Problem Handout #1 Spring 2015
1. Joe, age 17, single and blind is the dependent son of his parents. Joe has $1,200.00 of interest income and $3,100.00 of wages. What is Joe’s standard deduction?
2. Jill and Peter file a joint return. In total, they claim 4 exemptions. Their AGI is $360,000.00. What is their net personal and dependency exemption?
3. Joan, at age 43, paid $64,000.00 for an annuity. Monthly payments of $1,000.00 were expected beginning on her 70th birthday. Joan turned 70 on July 1, 2013 and received $6,000.00 in annuity payments that year. How much of the $6,000.00 is included in Joan’s income in 2014?
4. Matt has $225,000.00 of group-term life insurance provided to him by his employer. Matt is 41 years old. He pays 50 cents of the cost of each $1,000.00 of coverage. How much income does Matt have due to the group-term insurance?
5. Tina and Bob are married and they file married filing jointly. They have AGI = $30,000. They have tax exempt income of $3,000. They have social security benefits of $14,000. How much income does Tina and Bob have due to social security benefits?
6. Jay and Cathy are 69 and 61, respectively. Jay is blind. They file a joint return. They have itemized deductions totaling $30,000.00. They have one dependent that is blind.
Their sources of income and deductions are:
Wages-----------------------------------------------------$250,000.00
Interest from savings accounts------------------------ 15,000.00
Interest from NY qualified bonds--------------------- 9,000.00
Inheritance from Cathy’s dad-------------------------- 20,000.00
Alimony paid to Jay’s former wife-------------------- 12,000.00
Determine Jay and Cathy’s:
a. Standard Deduction
b. AGI
c. Taxable Income
d....