Answer each of the following as indicated. Unless the instructions say to “quote”, then you should explain in your own words.
A taxpayer is required under a divorce decree to make certain payments that consist of alimony of $12,000 per year and child support of $15,000. Due to financial difficulties, however, the taxpayer made equal monthly payments that totaled $9,000. The taxpayer is trying to determine what portion of the amount paid will be considered child support.
Which (Internal Revenue) Code section, subsection, and paragraph indicates if the payments made will be considered child support? How would you answer the client?
The information I would convey to the client is that as referenced in their divorce decree the child
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Publication 17 advises students that while receiving scholarships if work is performed such as teaching or research, then the amount received as scholarship is taxable. Internal Revenue code 501( c )(3) also proves information on determining if scholarship received s taxable.
A taxpayer is providing 100% of the support for a niece, who resided with him for the entire year. He is trying to determine if he may deduct an exemption for her as a qualifying relative.
Which Code section, subsection, and paragraph will provide him with information about what constitutes a qualifying relationship for the purpose of deducting a personal exemption?
When determining a qualifying relationship for deduction personal exemption based on information in Publication 17 the person has to be a relative. Additionally, once determined that there the person is related to you they are expected to be a member of the household and the taxpayer that is filing the return to claim the exemption had to have provided more than half of living support to this family member. Furthermore, the income earned by the relative cannot exceed $4000 which is dictate by Publication 17 for tax year 2015. The exemption amount for each person for the year 2015 is $4000 which changes on an annual
Child custody have been an issue for many years but no clear rules have been established until approximately in the 1970’s. In the early colonial years, the arrangement was unappealing to children and their mothers and possibly doing psychologically damage. Luckily, history has evolved and children’s well-being has become a priority in divorce cases.
John and Janet Baker are husband and wife and maintain a household of 7, including Janet and John. Calvin and Florence Carter are Janet’s parents, who are retired. During the year, they received $19,000 in nontaxable funds (disability income, interest on municipal bonds and Social Security benefits) from which $8,000 was equally spent between them on clothing, transportation, and recreation. The remaining $11,000 was invested in tax-exempt securities. Janet Baker paid $1,000 for her mother’s dental work and $1,200 premium on her father’s own life insurance policy. Janet’s father,
First guideline to meet is the relationship test. (i.e. parents, grandparents, aunt, uncle, some in law's, also non relatives can qualify as long as their living with the filer does not violate state law, and they also are not a spouse at any point during the filing year in question.) Once it is determined that an individual meets the qualifying relative guidelines then it must be determined if they meet the income guidelines. They must not have gross income more than the personal exemption amount for the calendar year. As long as the two previous guidelines are met then it is determined whether the filer provided more than ½ the support for the relative for the calendar year in question.
-Spouse B’s $8,000/month for 11 months of income from work because these are taxable wages that are paid to Spouse be for employment.
They will qualify for five exemptions, one for each of the dependent children, all under the age of 19 and that they provide over half the support for, and one personal
If your parents claim you as a dependent, then you have to fill out the attached worksheet that helps to figure out exactly what your deduction will be for line 5.
How is the child support amount calculated? The Child Support Guidelines are administered by the States and they vary from one state to another. The Guidelines are a little murky if one (or both) of the spouses are independent business owners that have control over their income. In such cases, a financial or tax professional will be able to help to figure out the real potential income of both spouses. Is there a need to go to court? If you are unable to reach an agreement, then going to court is necessary. A judge will hear the case once a court date has been set. In the USA, less than 2% of divorce cases ever proceed to trial. What is a QDRO and do I actually require one? A Qualified Domestic Relations Order (QDRO) is an official document that
The Father (Appellant) and Mother (Appellee) had a child together in 2004. The parents were never married. The child lived at times with each of the parents separately, and at other times with both parents together in the same
Arizona laws are used to determine spousal maintenance, child support and family support awards and amounts. In some cases, the court finds a temporary family support award appropriate. Laws and specifications regarding the handling of awards varies when comparing awards as set down in a final Decree to a temporary family support award. This differences between how the two types of financial awards are handled can lead to difficulties in interpreting the law as pertaining to the situation at hand. Such seemed to be the case with Maximov v. Maximov.
Petitto v. Petitto, 147 Md. App. 280, 307 (2002). In determining whether a change is material, “[a] change ‘that affects the income pool used to calculate the support obligations upon which a child support award was based’ is necessarily relevant.’” Id. (quoting Wills, supra, 340 Md. at 488 n.1).
Whether or not each element is perfectly met in each part of the exemption can be open to discussion. More
Section 3 requires information about the employment status of your spouse. Record appropriate response and specify name of the spouse’s employer if your response is yes. Specify the number of children under age 18 in Section 4.
When settling a divorce with children involved, a common question is how child support will eventually be determined. It can be concerning for a parent that wants custody and is worried about if they’ll get the support they need. It can also be concerning to the non-custodial parent, since they’ll need to be able to afford the payments. Know that child support will be determined by these factors.
Since Mr. and Mrs. Green intend on having joint custody of the children, it looks as if all aspects of rearing the children, including expenses as well as decision-making would be shared among the parents. Although it is "shared", that does not signify that it will be equally shared. The court will determine, based on the formula contained in the Kentucky Child Support Guidelines, what each parent pays. Furthermore, since Mrs. Green is without income as a homemaker, it seems as though some sort of child support payment should be paid in regards to the children while they are residing in her home. Also, if Mr. Green takes a job, earning less income due to health problems, this may affect the amount of child support he would be obligated to pay, but it shouldn't keep him from being required to pay some sort of child support. This job change can cause the court to deviate from the guidelines. However, the court may look at Mrs. Green's unemployment as being voluntary. Thus, the court may not use that issue in determining the child support Mr. Green should be obligated to pay. The court will probably not order Mrs. Green to obtain employment, but in looking at the facts, there is no valid reason as to her unemployment, and it may be in the
In order to claim the personal exemption the taxpayer must not be available for another to claim as a dependent. This question is one of the first questions on the form, “Can your parents or someone else claim you or your spouse on their income tax return?” If the tax payer is married and are filing jointly, 2 personal exemptions are allowed, if neither can be claimed as dependents on another tax return.