Paige Turner files her taxes as head of household, claiming two dependents. She is under age 65, but is not blind. She paid the following taxes:Real property taxes of $6,464Federal income taxes of $7,215Sales taxes of $869Personal property taxes of $516State income taxes of $2,872If her adjusted gross income was $65,992, what would her deductible taxes be (assuming she has sufficient other expenses)?

[1] Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions, and other income.2] Essentially, AGI starts with your gross income. Then, your income is reduced through the deductions. Some common examples of deductions that reduce adjusted gross income include deductible traditional IRA contributions, health savings account contributions and educator expenses.[3] You can deduct any estimated taxes paid to state or local governments and any prior year's state or local income tax as long as they were paid during the tax year. Generally, you can take either a deduction or a tax credit for foreign income taxes, but not for taxes paid on income that is excluded from U.S. tax.4] Tax brackets 2023 Tax RateHead of household10%$0 to $15,700.12%$15,701 to $59,850.22%$59,851 to $95,350. ParticularsAmount $Amount $Paige 's AGI as per given information [a] Note 1 & 265,992Less deductions:Real property taxes 6,464Personal property taxes 516State income taxes [b] Note 32,872 9,852Net Taxable Income [a-b][c]56,140Less Tax on it Note 4 [d]0 to 15,700= 15,700 x 10%= 1,57015,701 - 56,140=40,440 x 12%=4,853 6,423Less Federal Tax withholding [e] 7,215Refund due [d-e] 792Sales taxes of $869 are not deductible expense from AGI as per IRS rules 2023Deductible taxesReal property taxes 6,464Personal property taxes 516State income taxes 2,872 Less Federal Tax withholding 7,215 17,067

Answered: Paige Turner files her

Business

Accounting

Paige Turner files her

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Campbell, a single taxpayer, earns $406,000 in taxable income and $2,480 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) Required: a. If Campbell earns an additional $ 16,200 of taxable income, what is her marginal fa rate on this income ? b. What is her marginal rate if, instead, she had $ 16,200 of additional deductions ? Note: For all requirements, do not round intermediate calculations. Round percentage answers to whole percent.
Corina is self-employed. In 2020, her net profit from self-employment was $200,000, and she has no other income. What is Corina's SE tax liability? Round your answer to the nearest whole dollar.
Ninette, age 16, has dividend income of $2,800 and interest income of $935. She has no investment expenses. Determine the net unearned income for the purpose of the kiddie tax.What is the Net unearned income?
Jim and Mary Jean are married and have two dependent children under the age of 13. Both parents are employed outside the home and, during 2021, earn salaries as follows: $130,000 (Jim) and $5,200 (Mary Jean). To care for their children while they work, they pay Eleanor (Jim's mother) $5,600. Eleanor does not qualify as a dependent of Jim and Mary Jean. Assuming that Jim and Mary Jean file a joint tax return, what, if any, is their credit for child and dependent care expenses? $???
Victor's gross farm income is $540, and his net farm profit is $460. Consequently, his net earnings figured under the farm optional method are $360 (2/3 of $540) and his actual net earnings are $425 (92.35% of $460). Victor owes what amount of Self-Employment (SE) tax if he uses the farm optional method to determine the tax?
Suppose that Ana is preparing to file her taxes. She is single and currently lives in Denver. Ana earned $110,000 in taxable income in 2022. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 12.0 Ana calculates that she owes 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Ana calculates that her marginal tax rate is in income taxes for 2022. when her annual taxable income is $110,000. Ana then calculates that her average tax rate is, based on the annual income level and the amount of taxes she owes for 2022. After figuring out what she owes in taxes in 2022, Ana decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of taxable income from the federal government. The…
Charlie's regular tax liability is $43,695. His tentative minimum tax is $58,304. He doesn't have any tax credits. What is the amount of Charlie's alternative minimum tax (AMT) and how much will he actually pay in tax for the current year?
Brian and Kim have a 12-year-old child, Stan. For 2018, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. Click here to access the income tax rate schedules. If Stan’s parents elected to report Stan’s income on his parents’ return, what would the tax on Stan’s income be?$
Cassy reports a gross tax liability of $1,190. She also claims $590 of nonrefundable personal credits, $795 of refundable personal credits, and $390 of business credits. What is Cassy's tax refund or tax liability due after applying the credits?
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 14,975 Salon sales and revenue 88,760 Salaries paid to beauticians 46,550 Beauty salon supplies 23,640 Alimony paid to her ex-husband, Rocky 7,200 Rental revenue from apartment building 35,540 Depreciation on apartment building 14,100 Real estate taxes paid on apartment building 12,060 Real estate taxes paid on personal residence 6,937 Contributions to charity 5,029 a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
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 $.
1. Tonya; a single, calendar year, cash basis taxpayer; paid state income taxes of $8,000 during 2019. When she filed her 2019 state income tax return in 2020, she received a refund of $900. Her itemized deductions for 2019, which included her state income taxes paid, totaled $12,750. Under the tax benefit rule, how much of the refund must be included in Tonya's 2020 income? Tonya is 37 years old and not blind. $450 $0 $900 $550