Prior to the effect of tax credits, Paco's regular income tax liability is $145,000 and his tentative AMT is $120,000. Paco has nonrefundable business tax credits of $32,000. Paco's tax liability is $113,000. True False
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- Sam, not married and does not maintain a home for a dependent, has $50,000 salary and $5,000 qualified dividends. Sam has itemized deductions of $14,000. Compute Sam's total tax liability including both her income tax and net investment income tax, if applicable, for the current year. Group of answer choices $4,100. $4,115. $4,850. $5,040.In 2021, Patricia (age 10) received $7,880 from a corporate bond. Patricia lives with her parents and she is claimed as a dependent in their tax return. Assuming her parent's marginal tax rate is 24%, what is Patricia's gross tax liability? 2021 Tax Rate Schedules.pdf O $0. $110. O $1473. O $999.please help me solve all with working answer in text please answer correct
- This year Lloyd, a single taxpayer, estimates that his tax liability will be $12,100. Last year, his total tax liability was $16,400. He estimates that his tax withholding from his employer will be $9,130. Required: How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent.Chuck, a single taxpayer earns $75,600 in taxable income and $10,700 in interest from and investment in Coty of Heflin bonds. a. if chuck earns an additional $40,000 of taxable income, whats his marginal tax rate on this income? b. What is his marginal rate if instead he had $40,000 of additional deductions?How does the tax benefit rule apply in the following cases? a. In 2019, the Orange Furniture Store, an accrual method sole proprietorship, sold furniture on credit for $1,000 to Sammy. The cost of the furniture was $600. In 2020, Orange took a bad debt deduction for the $1,000. In 2021, Sammy inherited some money and paid Orange the $1,000 he owed. Orange's owner was in the 35% marginal tax bracket in 2019, the 12% marginal tax bracket in 2020, and the 35% marginal tax bracket in 2021. Orange Furniture must include $fill in the blank 102a7e000ffcfe0_1 in gross income as the recovery of a prior deduction. The timing of the income and deductions cost Orange $fill in the blank 102a7e000ffcfe0_2. b. In 2020, Marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid; the deduction was not limited by the SALT cap. This increased his itemized deductions to a total that was $800 more than the standard deduction. In 2021, Marvin received a…
- This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000.He estimates that his tax withholding from his employer will be $7,800. A. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? B. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent Dates 15- Apr 15- Jun 15- Sep 15- Jan TTL Actual witholding Req witholding Over (under) witheld Penalty per qtrTrudy's AGI last year was $366,000. Her Federal income tax came to $109,800, paid through both withholding and estimated payments. This year, her AGI will be $549,000, with a projected tax liability of $82,350, all to be paid through estimates. Trudy wants to pay the least amount of tax that does not incur a penalty. Note: Ignore the annualized income method. If required, round intermediate calculations to two decimal place and your final answer to the nearest dollar. a. Compute Trudy's total estimated tax payments for this year.Under the current-year method: $Under the prior-year method: $ b. Assume instead that Trudy's AGI last year was $86,000 and resulted in a Federal income tax of $17,200. Determine her total estimated tax payments for this year.Under the current-year method: $Under the prior-year method: $Mike, not married without dependents, has a $400,000 salary, $100,000 short-term capital gains, and $100,000 private activity municipal bond interest income. Mike's itemize deductions are $10,000. Calculate Mike's tentative minimum tax for the current year excluding net investment income tax.
- Aa.40.MOMO is an employee of BTS Corporation and earned $200,000 for the taxable year 2021. If for the same year, she earned $450,000 in commission income and opted to avail of the 8% flat rate, how much would be her total income tax due? a. $32,000 b. $36,000 c. $16,000 d. Answer not givenMr. John DeMello has 2021 net income for tax purposes of $26,100. His spouse is dependent on him because of a physical infirmity. The infirmity is not sufficient to qualify for the disability tax credit. She has 2021 net income for tax purposes of $5800. Mr. DeMello has no tax credits other than the Basic Personal credits for his spouse and himself. Determine Mr. DeMello’s federal tax credits for 2021. (BPA - $14398, Canada Infirm amount - $2295, Canada care giver- $7348, disability amount-$8662)
