In 2021, Bridget and Jeremy are married with two children, Laura and Sam. Bridget earns $60,000 from her job as an accountant. Jeremy earns $25,000 per year as a biologist. Jeremy also pays $5,000 of alimony per year to his ex-wife. Jeremy’s alimony agreement with his ex-wife was signed and executed on November 20, 2007. Jeremy owns a 30% interest in Bio-Clean Partnership. Bio-Clean earned $60,000 in operating income during the year, it also paid a cash distribution of $20,000 to Jeremy during the year. Bridget has $5,000 of interest from City of Jackson, Mississippi Bonds. She also has $7,000 of interest from General Motors bonds. They provide over half of the support for both of their children who live at home with them. Their daughter Laura is 17 and earns $10,000 per year at her hourly job at a hamburger restaurant. Sam is 22 years old and attends State University full-time and lives at home during the year. He earns $15,000 per year at a part-time job at a local museum. They also have the following expenses during the year: Medical Expenses: $13,750 State & Local Taxes: $5,500 Property Taxes on Home: $6,000 Federal Income Tax Payments: $16,000 Cash Charitable Contributions: $15,000 The amount per exemption for 2021 is: $0 (assume the indexed inflation amount would have been $4,300) The standard deduction amounts for 2021 are listed below: Single: $12,550 Head of Household: $18,800 Married Filing Jointly: $25,100 Calculate the appropriate amounts below for Bridget & Jeremy below. Please round to the nearest whole dollar use the number format $X,XXX with commas (for example $1,000 or $2,555 or $10,000). Also, please do not enter numbers as negatives. Failure to follow these instructions may cause an incorrect answer and/or a delay in grading. 1) What amount of Jeremy's Bio-clean income is included in Gross Income? 2) What amount of Bridget's Bond interest is included in Gross Income? 3) Bridget & Jeremy's Gross Income:
In 2021, Bridget and Jeremy are married with two children, Laura and Sam. Bridget earns $60,000 from her job as an accountant. Jeremy earns $25,000 per year as a biologist. Jeremy also pays $5,000 of alimony per year to his ex-wife. Jeremy’s alimony agreement with his ex-wife was signed and executed on November 20, 2007.
Jeremy owns a 30% interest in Bio-Clean Partnership. Bio-Clean earned $60,000 in operating income during the year, it also paid a cash distribution of $20,000 to Jeremy during the year. Bridget has $5,000 of interest from City of Jackson, Mississippi Bonds. She also has $7,000 of interest from General Motors bonds.
They provide over half of the support for both of their children who live at home with them. Their daughter Laura is 17 and earns $10,000 per year at her hourly job at a hamburger restaurant. Sam is 22 years old and attends State University full-time and lives at home during the year. He earns $15,000 per year at a part-time job at a local museum.
They also have the following expenses during the year:
- Medical Expenses: $13,750
- State & Local Taxes: $5,500
- Property Taxes on Home: $6,000
- Federal Income Tax Payments: $16,000
- Cash Charitable Contributions: $15,000
The amount per exemption for 2021 is: $0 (assume the indexed inflation amount would have been $4,300)
The standard deduction amounts for 2021 are listed below:
- Single: $12,550
- Head of Household: $18,800
- Married Filing Jointly: $25,100
Calculate the appropriate amounts below for Bridget & Jeremy below. Please round to the nearest whole dollar use the number format $X,XXX with commas (for example $1,000 or $2,555 or $10,000). Also, please do not enter numbers as negatives. Failure to follow these instructions may cause an incorrect answer and/or a delay in grading.
1) What amount of Jeremy's Bio-clean income is included in Gross Income?
2) What amount of Bridget's Bond interest is included in Gross Income?
3) Bridget & Jeremy's Gross Income:
4) What is the deductible amount of Jeremy's alimony payment?
5) Bridget & Jeremy's Adjusted Gross Income:
6) What is the deductible amount of their medical expenses after limitations?
7) What is the deductible amount of their state & local taxes after limitations?
8) Bridget & Jeremy's Taxable Income:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
