Paul and Hannah,who Are Married and File a Joint Return,are
Paul and Hannah,who are married and file a joint return,are in the process of adopting a child who is born in December 2014. The child,a son,comes to live with them a week after his birth on December 12. The adoption is not finalized until February of 2015.What tax issues are present in this situation?
Foreign exchange student Yung lives with Harold and Betty while he studies in the US. He moved into their home January 5,2014 and has resided with them for the remainder of the year. Yung does not pay anything for his room and board. Harold and Betty provide all of Yung's meals. Yung receives a scholarship to pay for his tuition,books and fees. He works on campus,earning $4,000 a year. What tax issues should Harold and Betty consider?
Mary Ann pays the costs for her Aunt Hazel to live in a nursing home. Aunt Hazel receives Social Security benefits of $7,000 a year which are turned over to the nursing home. Mary Ann pays the remaining cost of $33,000. Hazel has no other income. Mary Ann visits Hazel twice a week and meets with doctors and nurses regarding Hazel's medical care. What tax issues should Mary Ann consider?
Alexis and Terry have been married five years and file joint tax returns. Alexis began embezzling funds from her employer during the third year of their marriage. Last year,Alexis suddenly left the country and Terry does not know where she is. In the current year,Terry learned that the IRS had assessed him $27,000 in unpaid taxes due to Alexis's embezzlement. What tax issue(s)are present in Terry's situation? What questions would you ask Terry to determine his appropriate response to the IRS?