Question 28 Samantha Sithole is 37 years. She belongs to a medical fund and makes monthly contributions to this fund in respect of herself, her spouse (a dependant) and two children (both dependants). She paid R25 000 to the medical scheme during the current year of assessment and she also incurred and paid for qualifying medical expenses of R15 000 during this year. Her taxable income is correctly calculated as R299 300. None of the members registered in the medical scheme has been diagnosed as a person with disability as defined by a registered medical practitioner in accordance with the criteria prescribed by the Commissioner. YOU ARE REQUIRED to calculate the additional medical expense tax credit for the current year of assessment. Select one: a. R610 b. R0 c. R13 944 d. R9 556
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Samantha Sithole has herself, her spouse, and three dependants (two children and one other dependant). The medical scheme fees tax credit for the 2020 year of assessment is R310 for each of the first two beneficiaries and R209 for each additional beneficiary. Show more…
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Madhur L.
Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $37,500 as a sales representative for Planning Associates; $2,625 of her wages was withheld for federal income taxes. In addition, she had interest income of $90. The standard deduction in 2018 was $12,000 for singles. The appropriate tax rate schedule is shown below: EXHIBIT 3.3: Sample Tax Rate Schedules Tax rates levied on personal income vary with the amount of reported taxable income and the taxpayer's filing status. 2018 Tax Rate Schedules Single Taxable Income Tax Rate $0–$9,525 10% of taxable income $9,526–$38,700 $952.50 plus 12% of the amount over $9,525 $38,701–$82,500 $4,453.50 plus 22% of the amount over $38,700 $82,501–$157,500 $14,089.50 plus 24% of the amount over $82,500 $157,501–$200,000 $32,089.50 plus 32% of the amount over $157,500 $200,001–$500,000 $45,689.50 plus 35% of the amount over $200,000 $500,001 or more $150,689.50 plus 37% of the amount over $500,000 a. Estimate her taxable income. $ b. Estimate her tax liability. Round the answer to the nearest cent. Use unrounded values in later calculations. (Hint: Use the tax rate schedules given in Exhibit 3.3 to determine her tax liability.) $ c. Estimate her tax refund or tax owed. Enter tax owed, if any, as a negative amount. Round the answer to the nearest cent. $
Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $44,900 as a sales representative for Planning Associates; $3,143 of her wages was withheld for federal income taxes. In addition, she had interest income of $153. The standard deduction in 2018 was $12,000 for single. Please calculate the taxable income, tax liability, and tax refund or owed. The appropriate tax rate schedule is shown below: Taxable Income Tax Rate $0—$9,525 10% of taxable income $9,526—$38,700 $952.50 plus 12% of the amount over $9,525 $38,701—$82,500 $4,453.50 plus 22% of the amount over $38,700 $82,501—$157,500 $14,089.50 plus 24% of the amount over $82,500 $157,501—$200,000 $32,089.50 plus 32% of the amount over $157,500 $200,001—$500,000 $45,689.50 plus 35% of the amount over $200,000 $500,001 or more $150,689.50 plus 37% of the amount over $500,000
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