D and J are married and file a joint return. They live in New York. The standard deduction for their filing status is $25,500 They have the following itemized deductions: Medical Bills that exceeded the 7.5% limit $12,000 Mortgage Interest expense $24,500 Property tax $11,000 State Sales tax $7000 Miscellaneous deductions $10,050 Should they itemize their deductions or use the standard deduction

D and J are married and file a joint return. They live in New York. The standard deduction for their filing status is $25,500 They have the following itemized deductions: Medical Bills that exceeded the 7.5% limit $12,000 Mortgage Interest expense $24,500 Property tax $11,000 State Sales tax $7000 Miscellaneous deductions $10,050 Should they itemize their deductions or use the standard deduction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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L. A. and Paula file as married taxpayers. In August of this year, they received a $5,200 refund of state income taxes that they paid last year. How much of the refund, if any, must L. A. and Paula include in gross income under the following independent scenarios? Assume the standard deduction last year was $25,100. Note: Leave no answer blank. Enter zero if applicable. Required: a. Last year L. A. and Paula had itemized deductions of $19,200, and they chose to claim the standard deduction. b. Last year L. A. and Paula claimed itemized deductions of $31,400. Their itemized deductions included state income taxes paid of $7,500 and no other state or local taxes. c. Last year L. A. and Paula claimed itemized deductions of $27,600. Their itemized deductions included state income taxes paid of $10,500, which were limited to $10,000 due to the cap on state and local tax deductions.
Maria made $100,000 from long-term investments and Steve made $100,000 from wages. Both are filing single and took the standard deduction and personal exemption. Calculate the FICA taxes owed by each person Calculate the federal income taxes owed by each person Calculate the overall tax rate for each person
Sheila and Joe Wells are married with two dependent children. During 2021, they have gross income of $99,800, deductions for AGI of $3,500, itemized deductions of $10,000 and tax credits of $2,000. The Wells' had $6,000 withheld by their employer for federal income tax. They have a total tax of Blank 1 and an amount due/refund of Blank 2 (Use the tax table in Appendix D) Correct Answer Blank 1: 8149 Blank 2: 149
In 2022, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2022, Henry's qualified business income from driving is $ 134,200, Assume Henry takes the standard deduction of $12, 950. Click here to access the 2022 individual tax rate schedule to use for this problem. Question Content Area Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2022
Suppose you made $85,776 of income from wages and $830 of taxable interest. You also made contributions of $3700 to a tax deferred retirement account. You have 2 dependents and file as single. The standard deduction is 11900 and the exemption amount is 3100 per exemption. What is your Adjusted Gross Income? Answer to the nearest dollar.
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $28,000. Their total income fr wages is $271,800. Assume the following tax table is applicable: Married Couples Filing Joint Returns You Pay This Amount on the Base of the Bracket If Your Taxable Income Is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 What is their marginal tax rate? O a. 22.0% O b. 12.0% O c. 35.0% O d. 24.0% O e. 32.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on Average Tax Rate at Top the Excess over the Base of Bracket 10.0% 10.0% 12.0 11.5 22.0 17.1 20.4 22.8 26.9 37.0 24.0 32.0 35.0 37.0
A married couple with 4 children is filing taxes jointly. They have a gross income of $436,202, and they made the following tax-deductible purchases: • Charitable contributions: $6,826 • Medical expenses: $2,712 • Mortgage interest: $5,973 Compute their final income tax using the following information: Married Individuals Filing Joint Returns and Surviving Spouses If Taxable Income Is Between: The Tax Due Is: 0- $19,750 10% of taxable income $19,751 - $80,250 $1,975 + 12% of the amount over $19,750 $80,251 - $171,050 $9,235 + 22% of the amount over $80,250 $171,051 - $326,600 $29,211 + 24% of the amount over $171,050 $326,601 - $414,700 $66,543 + 32% of the amount over $326,600 $414,701 - $622,050 $94,735 + 35% of the amount over $414,700 $622,051 $167,307.50 + 37% of the amount over $622,050 Round your answer to the nearest dollar. Recall the standard deduction for married filers: $24,800
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Kyle and Alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters Jane and Jill, respectively, to attend the University of the Pacific. Jane is a sophomore and Jill is a freshman. Kyle and Alyssa's AGI is $147,000 and they file a joint return. What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?
Domestic
Xialu is a single taxpayer who is under age 65 and in good health. For 2020, she has a salary of $25,000 and itemized deductions of $7,000. Xialu allows her mother to live with her during the winter months (3–4 months per year), but her mother provides all of her own support otherwise. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 a. How much is Xialu's adjusted gross income?$fill in the blank b. In order to minimize taxable income, Xialu will _______ in the amount of $fill in the blank c. What is the amount of Xialu's taxable income?$fill in the blank
Leslie and Jason, who are married filing jointly, paid the following expenses during 2022: Interest on a car loan $ 130 Interest on lending institution loan (used to purchase municipal bonds) 3,150 Interest on home mortgage (home mortgage principal is less than $750,000) 2,210 Required: What is the maximum amount that they can use in calculating itemized deductions for 2022?