Eddie and Krysten married on January 1, 2020 and had their baby, Eddie Jr. on December 31, 2020. Eddie and Krysten earned $102,195 in salary during 2020, plus $2,325 in interest income on taxable bonds. They sold one of the bonds they held since 2015 at a gain of $100 in 2020. Their itemized deductions totaled $21,934. Their employers withheld $9,080 from their paychecks during the year. How much of a refund or tax is due with their federal income tax return for the year? Group of answer choices None of these choices are correct. $38 tax due $91 tax due. $1,962 refund $1,909 refund

Eddie and Krysten married on January 1, 2020 and had their baby, Eddie Jr. on December 31, 2020. Eddie and Krysten earned $102,195 in salary during 2020, plus $2,325 in interest income on taxable bonds. They sold one of the bonds they held since 2015 at a gain of $100 in 2020. Their itemized deductions totaled $21,934. Their employers withheld $9,080 from their paychecks during the year. How much of a refund or tax is due with their federal income tax return for the year? Group of answer choices None of these choices are correct. $38 tax due $91 tax due. $1,962 refund $1,909 refund

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $48,000. They had dividend income of $2,500. Diego and Dolores' deductions for adjusted gross income amounted to $3,000, their itemized deductions were $16,000, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100 d. What is their tax liability for 2021?
Jerry is single, age 60, and had adjusted gross income of $120,000 in 2022. His deductible expenses were as follows: Alimony(divorce finalized in 2017) Student loan interest paid Contribution to a traditional IRA State income taxes paid Interest on home mortgage Real estate taxes paid Property tax (Car) $20,000 2,500 5,500 5,500 8,500 7,000 400 What is Jerry's total allowable itemized deductions in 2022?
In September 2018, Bill and Linda, a married couple with $50,000 gross income, cashed qualified Series EE U.S. Savings Bonds which they had purchased in 2011. The proceeds were used to help pay for their son's 2018 college tuition. They received gross proceeds of $3,500, representing principal of $3,000 and interest of $500. The qualified higher education expenses they paid in 2018 totaled $2,100. Their modified adjusted gross income for the year was $20,000. How much of the $500 interest can Bill and Linda exclude from gross income in 2018?
Clarke, age 39, and Jessica, age 50, are married with two dependent children. They file a joint return for 2020. Their income from salaries totals $105,000; they receive $2,000 in taxable interest and $2,000 in royalties. Their deductions for adjusted gross income amount to $5,100; they have itemized deductions totalling $40,000. Calculate the following amounts: a. Gross income b. Adjusted gross income c. Itemized deduction or standard deduction amount d. Deduction for exemptions e. Taxable income f. Regular income tax liability from rate schedule
Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from his salary. Assuming that Greg is single, 25 years old, and will have a total tax liability of $1,355 (and thus will receive a $145 refund), he
In 2022, Nitai (age 40) contributes 10 percent of his $100,000 annual salary to a Roth 401(k) account sponsored by his employer, AY Incorporated. AY Incorporated matches employee contributions to the employee's traditional 401(k) account dollar-for-dollar up to 10 percent of the employee's salary. Nital expects to earn a 7 percent before-tax rate of return. Assume he leaves the contributions in the Roth 401(k) and traditional 401(k) accounts until he retires in 25 years and that he makes no additional contributions to either account. What are Nital's after-tax proceeds from the Roth 401(k) and traditional 401(k) accounts after he receives the distributions, assuming his marginal tax rate at retirement is 30 percent? (Use Table 1. Table 2.) Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. After tax proceeds from distribution Roth 401(k) Traditional 401(k)
In 2023, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray's taxable income (all ordinary) is $2,400,000, and they itemize their deductions as follows: state income taxes of $10,000 and mortgage interest expense of $25,000 (acquisition debt of $300,000). Use Exhibit 8-5 and Tax Rate Schedule for reference. a. What is Janet and Ray's AMT?
Chester is single and paid the following items / taxes in 2020: • Paid $ 6,100 to his township for real estate taxes on his condo.• Paid $ 4,800 in association fees to the condo association on his condo.• Chester had $ 1,000 withheld from his pay for NJ State Income taxes.• Chester had $ 3,600 withheld from his pay for social security taxes.• Chester was assessed $ 1,400 by the state of New Jersey to settle an audit of his 2018 State Income Tax return. $ 1,075 was for additional 2018 state income tax and $ 325 was for interest and penalties. Chester paid the $ 1,400 in October of 2020.• Chester paid $ 1,650 in NJ Sales taxes. How much taxes may Chester deduct as an itemized deduction for taxes in 2020?
Charles and Joan Thompson file a joint return. In 2022, they had taxable income of $98,800 and paid tax of $13,615. Charles is an advertising executive, and Joan is a college professor. During the fall 2023 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $80,000 in 2023. They expect their 2023 tax liability will be $9, 323, which will be the approximate amount of their withholding. Joan anticipates that she will work on academic research during the fall semester. During September, Joan decides to perform consulting services for some local businesses. Charles and Joan had not anticipated this development. Joan is paid a total of $ 40,000 during October, November, and December for her work. Use the appropriate Tax Rate Schedules. Required: What estimated tax payments are Charles and Joan required to make, if any, for tax year 2023? Note: Round your intermediate calculations and final answer to the nearest dollar…
George and Amal file a joint return in 2019 and have AGI of $39,800. They each make a $1,600 contribution to their respective IRAs. Assuming that they are not eligible for any other credits, what is the amount of their Saver’s Credit?
Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2018 Christmas season and get married around the end of the year. In 2018, Raphael expects to earn $58,600 and Martina expects to earn $23,500. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. They are trying to decide whether they should get married on December 31, 2018, or on January 1, 2019. What do you recommend?
Sheila and Joe Wells are married with no dependent children. During 2021, they have gross income of $159,800, deductions for AGI of $5,500, and itemized deductions of $10,000. The Wells' had $22,000 withheld by their employer for federal income tax. They have a tax refund of $__________