Problem 12-44 (LO. 2, 3, 4, 5)Jane and Robert Brown are married and have elght children, all of whom are considered dependents forFederal income tax purposes. Robert earns $196,000 working as senior manager in a public accounting firm,and Jane earns $78,000 as a second-grade teacher. Given their large family, they live in a frugal manner. TheBrowns maintain a large garden and fruit trees from which they get most of thelr produce, and the childrentake family and consumer science classes so that they can help make the family's clothing and makehousehold repairs.The Browns record no gross income other than their salaries (all of their investment income is earned fromqualified retirement savings), and their itemized deductions are less than the standard deduction of $25,100.In addition, they incur no additional adjustments or preferences for AMT purposes.Click here to access the 2021 tax rate schedule.Click here to access the exemption table.If required, round your final answers to the nearest dollar. If an amount is zero, enter "0".a. What is the couple's 2021 regular taxable income?What is the couple's 2021 regular tax liability?b. What is the couple's 2021 AMTI?What is the couple's 2021 AMT?( PreviousCheck My Work

Federal Taxation In the federal taxation it is computed by taken up of total gross income which are…

Click here to access the exemption table. If required, round your final answers to the nearest dollar. If an amount is zero, enter "0". a. What is the couple's 2021 regular taxable income? What is the couple's 2021 regular tax liability?

Click here to access the exemption table. If required, round your final answers to the nearest dollar. If an amount is zero, enter "0". a. What is the couple's 2021 regular taxable income? What is the couple's 2021 regular tax liability?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 34P

See similar textbooks

Similar questions

Bonnie is married and has one child. She owns Bonnies Rib Joint, which produces a taxable income of approximately 120,000 per year. a. Assume that Bonnies taxable income is 40,000 without considering the income from the rib joint. How much tax will she pay on the 120,000 of income from the rib joint? b. You work for the firm that prepares Bonnies tax return. Bonnie has asked the partner for whom you work to advise her on how she might lower her taxes. The partner has assigned you this task. Draft a memorandum to the partner that contains at least two options Bonnie could use to lower her taxes. For each option, explain the calculations that support the tax savings from your recommendation.
Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the current year. She receives 30,000 per year in tax-exempt municipal bond interest. Adam and Tanya are married and have no children. Adam and Tanyas 100,000 taxable income is comprised solely of wages they earn from their jobs. Calculate and compare the amount of tax Sheila pays with Adam and Tanyas tax. How well does the ability-to-pay concept work in this situation?
5. Ed and Wendy are a married couple. They have a five-year-old son. They each earns $60,000 per year, and their combined household adjusted gross income is $120,000. John and Kristen have $120,000 in combined household adjusted gross income and a five-year-old daughter. However, Kristen earns all of the income; John does not work. Using the Marriage Bonus and Penalty Tax Calculator provided by the Tax Policy Center, calculate the "marriage tax" or "marriage benefit" for each couple.
Aliana & Alfonso have 4 children. Ricardo is 26, works full time, and lives in his own apartment. Maria is 20 and is a full-time college student supported by her parents. Eduardo is a 17-year-old high school student living at home. Isabella is a 6-month-old baby born in the current year. What is the total child tax credit amount they can take? A. $3,500 B. $6,000 C. $4,500 D. $3,000
Tom and Rachel are married and living together in California. Their income is as follows: Tom's salary $40,000 Rachel's salary 30,000 Dividends (Tom's property) 5,000 Dividends (Rachel's property) 3,000 Interest (community property) 4,000 Total $82,000 Question a)If Rachel files a separate tax return, she should report income of: Question b)If Tom and Rachel lived in Texas, what should Rachel report as income?
Tom and Ashley have a daughter, Janice, who is 19-years-old and attending college as asophomore at a local public university. Her parents have the following expense with relations toher college: •$20,000 for annual college tuition •$500 in required fees for attending courses •$8,500 for room and board Using the above information, you have been asked to calculate their best option for an education deduction or tax credit. Tom and Ashley, make $115,000 per year. Among the three options for education tax benefit, show calculations for which one would be the best for them and what is the deduction/credit?
Kelly and Darryl are married. Kelly is a general partner in a successful fashion designing business. Her share of ordinary income was $119,655. Kelly also works part-time for a paper company. Her W-2 reported $34,862 in wages. Darryl is a successful executive and his W-2 reported $145,000 in wages. a. Calculate Kelly’s self-employment tax. b. Calculate the amount of Additional Medicare Tax that Kelly and Darryl owe based on their income. c. Calculate Kelly and Darryl’s AGI.
Harry and Wei are married and file a joint income tax return. On their tax return, they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wei) and report two dependent children. During the year, they pay the following amounts to care for their four-year old son and six-year old daughter while they work. ABC Day Care Center $3,200 Blue Ridge Housekeeping Services 2,000 Mindy Mason 1,000 Harry and Wei may claim a credit for child and dependent care expenses of: $840 $1,040 $1,200 $1,240
Need help on A and B Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $70,300. Meg works part-time at the same university. She earns $33,600 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.) a. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year? Short-term capital gains $ 14,000 Short-term capital losses (7,000) Long-term capital gains 20,000 Long-term capital losses (11,000) Total Tax Liability = b. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year? Short-term capital gains $…
If Jonathon worked for his mother's sole proprietorship, what salary would she have to pay him to generate $10,500 after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)? Required information [The following information applies to the questions displayed below.) Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $10,500 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent. c. If Jonathon worked for his mother's sole proprietorship, what salary would she have to pay him to generate $10,500 after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)? (Round your answer to the nearest whole dollar amount.)
6 Holly and Zachary Neal, from Dublin, Virginia, are preparing to file their 2020 income taxes. Their children are grown; however, Holly's mother, Martha, has moved in with them. As Holly is mow caring for her mother, she is no longer working. Martha is dependent on their income for support except for her $525.24 monthly Social Security benefit. Zachary works for a software company and earns anough to keep their heads above water; however, he had to discontinue paticipation in his retirement plan so they could pay the bills. Holly is taking this opportunity to work toward her master's degree. They know they will file jointly but need your help preparing their tax return. They have gathered all of the appropriate records: a. Are Martha's unreimbursed medical expense deductible on the Neals' tax return? Why or why not? b. Is Martha required to file a tax return? Why or why not? c. What tax advantage(s), attributable to Holly's education expenses, can the Neals include on their return? d.…
Sue, aged 48 and Paul, aged 49 have two daughters- Leena aged 17 and Reena aged 15. Sue works as a part-time teacher in a secondary school and earns a $26,000 p.a. salary (plus minimum superannuation guarantee contribution).Paul works as a dentist and earns $145,000 (plus minimum superannuation guarantee contribution). Paul is anxious about their post-retirement financial situation. The couple has approached you for financial advice in respect of reducing the tax payable and their retirement planning. Superannuation Sue (20% Tax Free) 270,000 Sue’s Superannuation asset allocation Investment Asset Allocation Performance p.a. after tax Australian Share 50% 4% Cash & Fixed Interest 15% 1.4% International Shares 30% 10.80% Property 5% 3.10% Calculate the expected return for Sue’s superannuation portfolio using the return for the year ended 2022. Explain to Sue why her superannuation…