PLEASSE HELP FAST Holly and Zachary Neal, from Dublin, Virginia, are preparing to file their...
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Holly and Zachary Neal, from Dublin, Virginia, are preparing to file their 2017 income taxes. Their children are grown; however, Holly's mother, Martha, has moved in with them so Holly is no longer working. Martha is dependent on their income for support except for her $545 monthly Social Security benefit. Zachary works for a software company and earns anough to keep their heads above water; however, he had to discontinue paticipation in his retirement plan so they could pay the bills. Holly is taking this opportunity to work toward her master's degree. They know they will file jointly but need your help preparing their tax return. They have gathered all of the appropriate records
QUESTION:
There are two tax advantages associated with Holly's education expenses. First, they can claim a Lifetime Learning tax credit of $ ? , as the Neals' income is below the income phase-out for the credit. Second, the $ ? in interest payments is an adjustment to income for the tax year, as again the Neals' income is less than the phase-out level for eligibility.
Of the total unreimbursed medical expenses, the Neals will be able to deduct $? Can the Neals' IRA contributions be deducted on their tax return? If so, to what extent?
The Neals' taxable income is $ (Round to the nearest dollar.) The Neals' total tax liability is ? (Round to the nearest dollar.)
Holly and Zachary Neal's Records 1099-DIV, Capital Gains, short-term Zachary's W-2, Wage and Tax Statement Gambling winnings Inheritance Holly and Zachary's aggregate traditional IRA contribution Martha's unreimbursed medical expenses Holly and Zachary's unreimbursed medical expenses Martha's total living expenses, excluding medical State taxes withheld and owed Mortgage interest expense Holly's student loan interest payment Holly's education expense $900 $53,900 $1,450 $38,000 $5,000 $5,100 $1,500 $12,000 $2,255 $5,800 $580 $5,360 Holly and Zachary Neal's Records 1099-DIV, Capital Gains, short-term Zachary's W-2, Wage and Tax Statement Gambling winnings Inheritance Holly and Zachary's aggregate traditional IRA contribution Martha's unreimbursed medical expenses Holly and Zachary's unreimbursed medical expenses Martha's total living expenses, excluding medical State taxes withheld and owed Mortgage interest expense Holly's student loan interest payment Holly's education expense $900 $53,900 $1,450 $38,000 $5,000 $5,100 $1,500 $12,000 $2,255 $5,800 $580 $5,360
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