In 2010, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000

In 2010, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000. During the year they incurred the following expenses:

Hospitalization insurance premiums $1,050
Premiums on an insurance policy that pays 300
$100 per day for each day Margaret is hospitalized
Medical care lodging (two people, one night) 65
Hospital bills 2.200
Doctor bills 850
Dentist bills 175
Prescription drugs and medicines 340
Psychiatric-care 300

In addition, during the year they drove 109 miles for medical transportation, and their insurance company reimbursed them $900 for the above expenses. Calculate the Murphy's medical expense deduction.


Click here for the solution: In 2010, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000

Phil and Linda are 25 year-old newlyweds and file a joint tax return

Phil and Linda are 25 year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not.

a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2010 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2010?
b. Assuming Phil's wages were $49,000 and Linda's wages were $63,000 for 2010 and they had no other income, what is the maximum amount of their deductible contributions to an IRA for 2010?


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Linda and Richard are married and file a joint return for 2010

Linda and Richard are married and file a joint return for 2010. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. Linda and Richard also used $750 worth of employee discount coupons for hotel rooms at the hotel chain that is also owned by the airline. Richard is employed at State University as an accounting clerk. Under a tuition reduction plan, Richard saved $1,000 in tuition fees during 2010. He is studying for a master's degree in business. Richard also had $30 worth of personal typing done by his secretary at the University.

What is the amount of fringe benefits that should be included in Linda and Richard’s gross income on their 2010 tax return?


Click here for the solution: Linda and Richard are married and file a joint return for 2010