Gary and Wendy are married and file a joint tax return claiming their seven children, ages 7,9, 11, 13, 15, 17and 19, as dependents. They pay Susan Smith $20,000 per year to care for their children after school andprovide some house cleaning (you can ignore household employment taxes). Information for 2020 includes thefollowing (cut & past table into Excel):ZOOMAGI including earned and unearned income490,000Gary's earned income 415,000Wendy's earned income 55,000Federal income taxes (all paid in 2020)State and local income taxes (all paid in 2020)Real estate property taxesHome mortgage interestCharitable contributions108,00025,0008,90014,2007,900Pay Susan Smith for childcare20,000(You can ignore any possible additional medicare tax and net investment income tax.)Starting with AGI, show each step of the tax formula and calculate taxable income, tax (before credits), childtax credit, child & dependent care credit, total tax credits, total tax (after credits), tax due (refund due). Therows could be labeled as follows:AGIStandard DeductionItemized deductionsAdd rows here to calculate itemize deductions Taxable IncomeTax on Taxable Income (before credits)Add data here for calculating taxesChild tax creditAdd rows here to calculate child tax creditChild & dependent care creditAdd rows her to calculate child & dependent care creditTotal Tax CreditsTotal tax after credítsPrepaymentsTax due (refund due)

Personal Equity Plan: Capital gains on the investment of shares of publicly listed companies is tax…

Answered: Gary and Wendy are married and file a…

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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Similar questions

Kristin and Logan have two young children. They have $7,000 of qualified child care expenses and AGI of $22,000 in 2020. What is their allowable child and dependent care credit considering their pre-credit tax liability? a. $1,860 b. $0 c. $7,000 d. $2,000 e. $6,000
Tina Chatwood is single with no dependants. During the year she had the following amounts deducted from her salary of $70,000: CPP premiums 2,898 El premiums 856 Income tax 4,300 Based on this information, what amount is closest to Tina's total federal tax credits for 2020 that can be claimed on her return. $0 $750 $2,734 $2,547
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
Victor and Roberta Sanchez file jointly and had a combined income of $85,700 last year. They contributed $4,200 to their retirement plan and had itemized deductions of $19,420. Their combined income tax withheld last year amounted to $9,555. Are they entitled to a refund or do they owe additional taxes? O owe additional taxes O entitled to a refund How much (in $)? $ Need Help? Read It Watch It Master It
Paul is single, has $62,100 of wages, and pays 20% in federal and state income tax. If the combined federal and state tax rate increases to 25%, how much additional income must Paul earn to maintain the same desired take-home pay in 2023? (Round answer to O decimal places, e.g. 5,125.) Additional income $ LA
18. Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During 2022, Rex earned a salary of $27,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is: a.$0. b.$5,840. c.$5,903. d.$6,164.
Liam has a gross income of $120,000 and takes the standard deduction. 1) What are his total taxes due? 2) What is his marginal tax rate? 3) What is his effective tax rate? Round to the neared hundredth of a percent.
Social Security is paid in with after-tax dollars but may be subject to tax if annual income exceeds a base amount. A single taxpayer’s base is $25,000. Married taxpayers filing jointly have a base of $32,000. Married taxpayers filing separately have a base of zero. Suppose Eric is retiring this year at age 67. The following table shows his data. Part-time salary $30,500 Annual savings account interest $300 Annual dividends $2,750 Annual interest on Dallas municipal bonds $1,550 Based on the income calculated, Eric will have % of his Social Security benefits taxed.
Tiffany is married and filling joint returns with her husband Aris. They have $108,000 taxable income. What is their marginal tax rate? Your 2019 individual income tax brackets Married 2019 Individual Income Tax Rates Filling Jointly -Taxable Income 10 percent 12 percent 22 percent 24 percent 32 percent 35 percent 37 percent O 10% O 12% © 22% O 24 % Single- Taxable Income 0 to $9,700 $9.701 to $39.475 $39.476 10 104,200 $54,201 to $160,725 $160.726 to 1204,100 1204301 10 $510,100 $510,301 and VOI 0 to $19,400 $19.401 to $78.950 $78,951 to $168.400 $168,401 to $321,450 532145110 $408.200 1408,201 to 1 1612.350 $612,351 and UD Head of Household - Taxable Income 0 to $13,850 $13,851 to $52,850 $52,851 to $84.200 $84,2010 $100,700 $160,701 to $204,100 1204,101 10 $510,300 $510,301 and up
15. From the following information determine the total 2020 tax due for Gracelyn and Jason Baxter, assuming they file a joint return, have three dependents all under the age of 8, and are not members of a qualified retirement plan: Jason's Wages $ 76,000 Gracelyn's Wages $ 42,000 Jason's IRA Contribution $ 3,000 Gracelyn's IRA Contribution $ 3,000 Gracelyn's Self Employment Income from Etsy $ 77,000 Tax Preference Items $ 50,000 General Business Credit $ 6,00 Primary Residence Mortgage Interest $ 18,000 Property Taxes $ 12,000 What is the total tax due?
Dermot and Melony are married, file a joint tax return and have AGI of $120,000. Their daughter Sissy, who qualifies as their dependent child, is a senior at West University during Fall of 2020. In 2020, Dermot and Melony paid $15,000 to West University for Sissy's qualified tuition and fees. They also paid $6,000 qualified tuition and fees to East University where Melony is finishing up her MBA. Calculate the education tax credits that Dermot and Melony can take on their 2020 tax return.
Malcolm and Megan Johnson are both over age 65, married and are filing a joint tax return for 2020. The joint Social Security is 644-47-7833. The couple has AGI of $ 28,108 for 2020 and provided the following information all which can be verified for 2020: Medical related expenses: Medical insurance premiums $ 1,200 Premiums in insurance policy that pays $100 per day for each day that Megan is hospitalized 400 Medical care and lodging 80 Hospital bills 2,200 Doctor bills 750 Dentist bills 240 Prescription drugs and medicines 360 Over-the-counter medicines 510 Marriage counseling 400 The couple drove 90 miles for medial transportation and their insurance reimbursed them $850 for the above expenses. Taxes related expenses: Megan’s employer withheld State income tax $ 3,400 Megan paid additional state income tax for 2019 600 Real estate taxes on home 2,100 Personal property taxes based on home value 130 State gasoline taxes 80 General sales tax for the year 1,200 Federal income taxes…

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