45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following income and expenses from his business in 2019. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary Unreimbursed travel expenses (including $200 of meals) $145,000 1,600 Other pertinent information for the tax year includes the following. Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000), and sold on August 1, 2019 Proceeds from sale of stock acquired on September 18, 2018 (cost of $5,000), and sold on October S5, 2019 $9,800 3,800 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld 31,850 Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.
45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following income and expenses from his business in 2019. Gross income $325,000 Business expenses 201,000 Records related to Sarah's employment provide the following information. Salary Unreimbursed travel expenses (including $200 of meals) $145,000 1,600 Other pertinent information for the tax year includes the following. Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000), and sold on August 1, 2019 Proceeds from sale of stock acquired on September 18, 2018 (cost of $5,000), and sold on October S5, 2019 $9,800 3,800 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 Interest income received 7,000 Total itemized deductions (not including any potential deductions above) 27,900 Federal income tax withheld 31,850 Estimated payments of Federal income tax 20,000 Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 45CP
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Transcribed Image Text:45. Tim and Sarah Lawrence are married and file a joint retum. Tim's Social Security
number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside
at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and
Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-15-6788, and
Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson
(sole proprietor of an unincorporated business), and Sarah is a corporate executive.
Tim has the folowing income and expenses from his business in 2019.
Gross income
$325,000
Business expenses
201,000
Records related to Sarah's employment provide the following information.
Salary
$145,000
Uneimbursed travel expenses (including $200 of meals)
1,600
Other pertinent information for the tax year includes the following.
Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000),
and sold on August 1, 2019
Proceeds from sale of stock acquired on September 18, 2018
(cost of $5,000), and sold on October 5, 2019
$ 9,800
3,800
Wages paid to full-time domestic worker for housekeeping and
child supervision
10,000
Interest income received
7,000
Total itemized deductions (not including any potential deductions above)
27,900
Federal income tax withheld
31,850
Estimated payments of Federal income tax
20,000
Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.
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