In 2022, Miranda records net earnings from self-employment of $195,200. She has no other gross income. Determine the amount ofMiranda's self-employment tax and her AGI Income tax deduction.In your computations, for the tax liability, round interim amounts to two decimal places and the final answer to the nearestwhole dollar. For the AGI deduction, if necessary, use amounts that have been rounded to the nearest dollar.Miranda's self-employment tax is s28,650 X and she has as28,650 X deduction for AGI.

Individuals who are self-employed and have received income from self-employment are subject to the…

Answered: In 2022, Miranda records net earnings…

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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Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's gross receipts during the year were $111,000. He uses the cash method of accounting. His business expenses are $68,890. Assume the QBI amount is net of the self-employment tax deduction. What is he qualified business income deduction for 2020?
Yanni, who is single, provides you with the following information for 2023: Salary State income taxes Mortgage interest expense on principal residence Charitable contributions Interest income a. Yanni's taxable income: Click here to access the exemption table. If required, round your answers to the nearest do Compute the following: b. Yanni's AMT base: c. Yanni's tentative minimum tax: LA $ SA $103,000 10,300 9,270 S 2,060 1,545 10,370 X 0 X
Brooklyn files as a head of household for 2023. They claimed the standard deduction of $20,800 for regular tax purposes. Their regular taxable income was $124,500. What is Brooklyn's AMTI? AMTI Description Amount
Lacy is a single taxpayer. In 2022, her taxable income is $44,200. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Required: All of her income is salary from her employer. Her $44,200 of taxable income includes $1,200 of qualified dividends. Her $44,200 of taxable income includes $5,200 of qualified dividends.
Henrich is a single taxpayer. In 2022, his taxable income is $488,500. What are his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Note: Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places. Required: His $488,500 of taxable income includes $56,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $520,000. Henrich has $199,250 of taxable income, which includes $51,700 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $218,500.
For 2023, Wilma has properly determined that her taxable income is $36,000, including $3,000 of unrecaptured § 1250 gain and $8,200 of 0%/15%/20% gain. Wilma qualifies for head-of-household filing status. Compute Wilma's tax liability and tax savings from the alternative tax on net capital gain. Click here to access the tax rate schedules to use for this problem. Round your answers to the nearest dollar. When computing Wilma's tax liability, what tax rate is used for: • The $3,000 of unrecaptured § 1250 gain? 12% . The $8,200 of 0%/15%/20% gain? 0% Wilma's tax liability is X and the tax saving from the alternative tax computation is $ 984
Henrich is a single taxpayer. In 2019, his taxable income is $456,500. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no answer blank. Enter zero if applicable.) Estates and Trusts If taxable income is over: But not over: The tax is: $ 0 $ 2,600 10% of taxable income $ 2,600 $ 9,300 $260 plus 24% of the excess over $2,600 $ 9,300 $12,750 $1,868 plus 35% of the excess over $9,300 $12,750 $3,075.50 plus 37% of the excess over $12,750 Tax Rates for Net Capital Gains and Qualified Dividends Rate* Taxable Income Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates 0% $0 - $78,750 $0 - $39,375 $0 - $39,375 $0 - $52,750 $0 - $2,650 15% $78,751 - $488,850 $39,376…
Purple Company has $200,000 in net income for 2022 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,950 standard deduction for 2022 (she has no other deductions). Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2022 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar. a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $37,410 deduction for qualified business income. Kirsten's taxable income is s 149,640 ✔ and her after-tax income is $ 170,251 ✔ b. Purple Company is a C corporation and the corporation pays out all of its after-tax…
Adelaide is self-employed and must submit estimated quarterly tax payments. Her predicted total tax liability for the current year will be $⁢36,000, and her current withholdings are $⁢18,283. She is advised to determine her quarterly payments by subtracting her current withholdings from her predicted total tax liability and dividing by four. What is a good estimate for Adelaide to use for her quarterly payments?
Sharon Jones is single. During 2022, she had gross income of $159,800, deductions for AGI of $5,500, itemized deductions of $14,000 and tax credits of $2,000. Sharon had $22,000 withheld by their employer for federal income tax. She has a tax (due/refund) rounded to the nearest whole dollar of $.
Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return andexpects her taxes to be the same for 2020. Which of the following statements is correct?Select one:a. Juanita will not be required to pay estimated tax payments for 2020.b. Juanita will not be subject to self-employment tax.c. Juanita should take out a loan to pay her 2020 taxes when she files the return.d. Juanita should make estimated tax payments to avoid an underpayment penalty.
Chris and Heather are engaged and plan to get married. During 2023, Chris is a full-time student and earns $9,400 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Heather is employed and has wages of $72,600. Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to the nearest whole dollar. a. Compute the following: Gross income and AGI Standard deduction (single) Taxable income Income tax Chris Filing Single Heather Filing Single

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