ge 40) and Lori (age 39) Post are married. Lori works as a retail manager and Steven is a self-employed architect (he does not qualify for the QBI Deduction) and does not maintain a home office. Their 2020 tax and other information are as follows: Salary – Lori $90,000 Federal income tax withholding on salary $18,000 CT State Income Tax withholding on salary $ 6,000 CT Municipal bond interest $ 2,000 Savings account interest $ 1,500 Inheritance from
Steven (age 40) and Lori (age 39) Post are married. Lori works as a retail manager and Steven is a self-employed architect (he does not qualify for the QBI Deduction) and does not maintain a home office. Their 2020 tax and other information are as follows:
Salary – Lori $90,000
Federal income tax withholding on salary $18,000
CT State Income Tax withholding on salary $ 6,000
CT Municipal bond interest $ 2,000
Savings account interest $ 1,500
Inheritance from Steven’s father’s estate $ 7,000
Dividends from RGR, Inc (all are non-qualified) $ 4,000
Interest paid on Loris’s personal car loan $ 2,000
Child support paid to Steven’s ex-wife $10,000
Alimony paid to Steven’s ex-wife. Divorced in 2010 $ 6,000
Qualified Out of Pocket Medical Expenses $ 5,000
Donations to Church $ 2,500
Real Estate Taxes on primary residence $ 5,000
Mortgage interest paid on primary residence (<$1M) $ 8,000
Steven’s business revenue $60,000
Steven’s business expenses $15,000
Required: Using the tax formula format, determine the following for the Post’s 2020 tax year (show all calculations):
- Deductions For AGI $ ___________
- Itemized deduction or standard deduction amount $ ___________
- Qualified Business Deduction $ ___________
- Self-employment tax liability $ ___________
Remember: This is for the 2020 tax year. You must use appropriate 2020 amounts for standard deduction, exemptions, and tax calculations. You are not required to use tax forms. SHOW ALL CALCULATIONS
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