Retirement Final

Baldwin is the president of ZZZ. Baldwin has a home with 18,000 square feet of floor space. Every week, Baldwin has the cleaning crew of ZZZ clean his carpets. He theorizes that this good training for the crew. Baldwin's CPA tells him that he can avoid inclusion of the value of the services in his gross income if he offers to have any employees carpet cleaned at a reduction from retail. Baldwin establishes such a plan and allows a 50% reduction for all the employees including himself. This year, the total retail value of cleaning at Balwin's house was $20,000, of which he paid $10,000. How much, if any must Baldwin include in his gross income resulting from the discount?

$6,000

Jean works for AR Law Firm and lives on the west bank of the city. AR doesn't have a qualified transportation and parking benefits program, but it pays (reimburse) Jean $10 per month for riding the river taxi to work. The monthly pass to ride the river taxi is $50. How much does Jean need to include in gross income related to this river taxi pass?

$0

Meredith is an employer of a large company. The company has a health facility on its premises for the exclusive use of its employers and their dependents. A comparable private health club membership at a public facility would cost $2,400 per year. How much if any. Must Meredith include in her gross income if her 10-year old daughter uses the facilities for one-half of the year?

$0

Natalie is a secretary at JKL provides her with free sodas at her discretion. Natalie estimates that she drinks $20 worth of sodas per month. How much must Natalie include in her annual gross income related to the sodas?

$0

Robbin is married to Robert and they have one child, Angel age 14, who is in the 6th grade. Angel is a difficult child and she is cared for in the afternoon by the Sisters of Reformation. Robin pays $6,000 per year for the childcare. Robbin's company has a dependent care assistance program. If Robbin makes the maximum use of the dependent care assistance program, how much can she exclude from her income if she files a joint return with Robert?

$0

Eric moved from Houston to New Orleans. His expenses for the move include $400for truck rental, $100 for lodging, and $200 of pre-move house-hunting expenses. If Eric's employer reimbursed him $600, how much of the reimbursement is included in his gross income?

$100

A single individual has income of $27,000 and Social Security benefits of $18,000. What amount of the SS benefits must be included in their taxable income?

$1000

Assume that Joe, a worker born in 1939, decided to retire on her 62nd birthday. Assume that her full retirement benefit would have been $2,289.64 at age 65 and four months, her full retirement age. If she retires at 62, what is her monthly retirement benefit?

$1793

A married couple has income of $63,000 and Social Security benefits of $22,000. What amount of the SS benefits must be included in their taxable income?

$18,700

Calculate the PIA for someone with an AIME of $5, 300.

$2,168

Calculate the PIA for someone with an AIME of $8,000.

$2,573

Tom's normal retirement age is 67. Assume Tom's full retirement benefit would have been $2,164.89. What if Tom retired at age 66? Calculate Tom's monthly retirement benefit.

$2019

Jane is covered by a $90,000 group-term life insurance policy, her daughter is the sole beneficiary. Jane's employer pays the entire premium for the policy; the uniform annual premium is $0.60 per $1,000 per month of coverage. How much, if any, is W-2 taxable income to Jane resulting from insurance?

$288

Bob is 64 years old and despite being retired from his occupation as a dentist, earned $22,000 in 2015 while working as a tennis instructor at a local country club. Bob's monthly retirement benefit from Social Security is normally $1,200 which totals $14,400 for the entire year. Because Bob exceeded the retirement earnings limitation, how much money will be reduced from Bob's Social Security retirement benefit for 2015?

$3140

A married couple has income of $33,000 and Social Security benefits of $26,000. What amount of the SS benefits must be included in their taxable income?

$7,000

Greg is employed by a large corporation with 400 employees. The corporation provides its employees with a no-cost gym membership at a local YMCA. The cost of the membership is $60 per month, which is completely paid for by Greg's employer. How much must Greg include in his yearly gross income related to this no-cost fringe benefit?

$720

Isse Peking is the manager of Airline Highway Motel. Isse lives in Unit 12. He was given the option to live at the motel if he would also look after the night auditing (the value of his reviews is $400 per month) responsibilities. The value of the motel unit on a monthly basis is $800, but Unit 12 rents on a daily basis for $100 per day. How much, if any, does Isse have to include in his gross income for living on the premises of his employer?

$800 per month

Which of the following benefits provided by an employer to its employee is currently taxable to the employer?

Incidental personal use of a company car

Which of the following premiums for health insurance provided by an employer is/are excludable from income tax by the employee? (1) Premiums for the employee if currently employed (2) Premiums for the employee's spouse (3) Premiums for the employee's dependents other than the spouse (4) Premiums for the employee if retired

1, 2, 3, and 4 All premiums (Statements 1-4) are excludable.

Which of the following is/are advantages of cafeteria plans? (1) Cafeteria plans help to give employees an appreciation of the value of their benefit package (2) The flexibility of a cafeteria benefit package helps to meet varied employee needs (3) Cafeteria plans can help control employer costs for the benefit package because the cost of benefits that employees do not need is minimized (4) Cafeteria plans are less complex and less expensive to design and administer than general group benefit plans

1, 2, and 3

Kenny holds 2 jobs- a full time job with R corporation and a part-time job with Z Corp. Kenny uses his car to drive to work. The mileage is as follows from Kenny's home to R is 70 miles; from R to Z is 10 miles; and from Z to Kenny's home is 70 miles. Kenny's deductible mileage for each work day is:

10 miles

What is the maximum number of employees that a company with a health plan can have and not be subject to the COBRA rules

19

Which of the following is true concerning the qualified moving expense reimbursement?

2 and 3 2. The distance between the old home and the new job location must be at least 50 miles greater than the distance between the old home and the old job location. 3. A qualifying move must be closely related to the start of work

Which of the employee fringe benefits listed below, if provided by the employer, would be included in an employee's gross income?

2 only: Season tickets to professional football games.

Which of the following circumstances suggest the use of a cafeteria plan? (1) A cafeteria plan is appropriate when the employee mix is comprised only of older employees with families who need maximum medical and life insurance benefits (2) A cafeteria plan is appropriate when employees want to choose the benefit package most suited to their employee's individual needs (3) A cafeteria plan is appropriate when employers seeks to maximize employee satisfaction with the benefit package, thereby maximizing the employer's benefit from its compensation expenditures (4) A cafeteria plan is appropriate for a small employer who does not have much money to spend on benefits

3 only

Kohler Company allows a 25% discount to all nonofficer employees. Officers are allowed a 30% discount on company products. Kohler's gross profit percent is 35%. Which of the following is true?

All discounts taken by officers (30%) are includible in their gross income because the plan is discriminatory.

Ellen is 71 years old and despite being retired from her occupation as an accountant, earned $28,000 in 2015 while working as a math tutor at a local high school. Ellen's monthly retirement benefit from Social Security is normally $1,800 which totals $21,600 for the entire year. Will Ellen face any reductions in her Social Security benefit for working in 2015?

No because Ellen is over normal retirement age

The qualified tuition reduction does not apply to:

Non-dependent children of current employees

HMO Inc. is paying the premium for long-term care policies for their 250 employees. How are these payments treated for federal income tax purposes?

Payments for group premiums for long-term care are tax deductible to the employer and not taxable income to the employee

Medical Trials Inc. has a cafeteria plan. Full time employees are permitted to select any combination of the benefits listed below, but the total value received by each employee must be $6,500 a year or less. (1) Group medical and hospitalization insurance foe employee only, $3,600 a year (2) Group medical and hospitalization insurance foe employee' spouse and dependents, $1,200 additional a year (3) Child-care payments, actual cost not to exceed $5,000 (4) Cash required to bring the total of benefits and cash to $6,500 (5) Universal variable life insurance $1,000 Which of the following statements is true? (All employees are full time)

Robin chooses 1 and 2 and $1,700 cash. Robin must include $1,700 in taxable income

Patrick works for the Atlanta Falcons in marketing. The falcons have an athletic facility on the premises for employees other than football players. The value provided by the Falcons to Patrick of this fringe benefit is not included in Patrick's gross income if:

Substantially all of the use of the facility is be employees of the Falcons, their spouses or their dependent.

Which of the following are examples of fringe benefits that are not de minimus?

a. The commuting use of an employer-provided automobile or other vehicle more than one day per month. b. Membership in a private country club. c. Season tickets to theatrical events. d. Employer-provided group term life insurance on the life of the spouse of an employee. e. All of the above E) All of the above

Employer-sponsored life insurance is usually referred to as group life insurance. Which type of life insurance (offered as group life) is beneficial to both the employer and the employee from a tax standpoint?

term life insurance

The beneficiary of key person life insurance is usually:

the company