Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerold (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8,200 in itemized deductions. Click here to access the standard deduction table to use if required. a. Morgan's taxable income is $ 71,650 X. b. Using the Tax Rate Schedules (click here), tax liability for Morgan is $ c. Compute Morgan's dependent tax credit. $ 1,000 10,201 X for 2020.

Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerold (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8,200 in itemized deductions. Click here to access the standard deduction table to use if required. a. Morgan's taxable income is $ 71,650 X. b. Using the Tax Rate Schedules (click here), tax liability for Morgan is $ c. Compute Morgan's dependent tax credit. $ 1,000 10,201 X for 2020.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 34P

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Adjusted Gross Income $15,000 or less $15,001-17,000 $17,001-19,000 $19,001-21,000 $21,001-23,000 $23,001-25,000 $25,001-27,000 $27,001-29,000 $29,001-31,000 $31,001-33,000 $33,001-35,000 $35,001-37,000 $37,001-39,000 $39,001-41,000 $41,001-43,000 $43,001 or more Applicable Percentage 34% 33% 32% 31% 30% 29% 27% 24% 23% 22% 21% 20%