Determine the amount of taxes owed or the refund that would result in this situation:• Filing Status: Married filing jointly. Gross Income: $125,000.Adjustments: $6,900• Itemized Deductions: $10,400• Credits and Withholdings: $15,000a. What is their adjusted gross income (AGI)?b. Should they itemize or take the standard deduction?take the standard deductionⒸitemizec. Use the simplified 2018 tax tables to determine their taxable income."Remember to subtract the deduction to determine the taxable income.d. Determine their tax using the 2018 tax tablee. What is their final tax refund or amount still owed (if they owe enter the number as a negative)?Standard deductionMarried filing jointly and surviving spousesSingle (other than surviving spouses and heads of households)Heads of householdsMarried filing separatelyPersonal Exemption: None$24,000$12,000$18,000$12,000Single (other than surviving spouses and heads of households)If taxable income is:The tax is:Not over $9,52510% of the taxable income$952.50 plus 12% of the excess over $9,525$4,453.50 plus 22% of the excess over $38,700$14,089.50 plus 24% of the excess over $82,500$32,089.50 plus 32% of the excess over $157,500Over $9,525 but not over $38,700Over $38,700 but not over $82,500Over $82,500 but not over $157,500Over $157,500 but not over $200,000 Over $200,000 not over $500,000Over $500,000Heads of householdsIf taxable income is:Not over $13,600Over $13,600 but not over $51,800Over $51,800 but not over $82,500Over $82,500 but not over $157,500Over $157,500 but not over $200,000Over $200,000 not over $500,000Over $500,000$45,689.50 plus 35% of the excess over $200,000$150,689.50 plus 37% of the excess over $500,000The tax is:10% of the taxable income$1,360 plus 12% of the excess over $13,600$5,944 plus 22% of the excess over $51,800$12,698 plus 24% of the excess over $82,500$30,698 plus 32% of the excess over $157,500$44,298 plus 35% of the excess over $200,000$149,298 plus 37% of the excess over $500,000

Note: As per our guidelines, we will solve the first three subparts for you a. Given Gross income…

Answered: Determine the amount of taxes owed or…

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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Tax Drill - Social Security Benefits Determine the taxable amount of social security benefits for the following situations. If an amount is zero, enter "0". a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $36,000, no tax-exempt interest, and $12,400 of Social Security benefits. As a result, s 0X of the Social Security benefits are taxable. b. Assume Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest, and $16,000 of Social Security benefits. As a result, s O✓ of the Social Security benefits are taxable. c. Assume Erwin and Eleanor have adjusted gross income of $85,000, no tax-exempt interest, and $15,000 of Social Security benefits. As a result, s 0X of the Social Security benefits are taxable.
The following information relates to two married couples: (Click the icon to view the information.) (Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the standard deduction amounts.) Read the requirement. Begin by computing taxable income for each couple. (Complete all input fields. Enter "0" for accounts with a zero balance.) McDonalds Cadys Taxable income Requirement Compute the 2021 tax due or refund due for each couple. Assume that any restrictions on itemized deductions have been applied. Ignore credits. Print Done
11.A taxpayer is claiming tax preparation expense as a legal and professional fee. They paid $430 at your office last year. The forms breakdown by cost is as follows: Form 1040- $100 Form Sch. C- $125 Form SE- $55 Form 8867- $75 Form 8863- $75 What is the correct amount that can be deducted on their Schedule C for the current year? Choose one answer. a. $280 b. $180 c. $355 d. $430
! Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,050 7,450 4,200 650 4,650 23,700 During the year, Alexa rented out the condo for 137 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $47,750 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the…
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