Proofing Accessibilit E29 X✓ fx B The Chungs are married with one dependent child. They report the following information for 2023: Schedule C net profit Interest income from certificate of deposit (CD) Self-employment tax on Schedule C net profit Dividend eligible for 15% rate Lila Chung's salary from Brants Company Dependent care credit Itemized deductions Required: $ 66,650 2,100 9,418 12,000 75,000 500 31,000 Compute AGI, taxable income, and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and 17 Standard Deduction Table. Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Amount $ 151,041 AGI Taxable income $ 107,653 Total tax liability $ 16,068 10 11 12 13 14 15 16 Taxable Income 107653 Capital Gain 12000 18 Ordinary Income 95653 19 Floor 89450 20 Excess Over Floor 6203 21 Tax Rate 0.22 22 1364.66 23 10294 24 Ordinary Tax 11658.66 25 Capital Gain Tax 1800 26 SE Tax 4709 27 Total Tax 18167.66 28 Child Credit 2000 29 Care Credit 100 30 Total Liability 16067.66
Proofing Accessibilit E29 X✓ fx B The Chungs are married with one dependent child. They report the following information for 2023: Schedule C net profit Interest income from certificate of deposit (CD) Self-employment tax on Schedule C net profit Dividend eligible for 15% rate Lila Chung's salary from Brants Company Dependent care credit Itemized deductions Required: $ 66,650 2,100 9,418 12,000 75,000 500 31,000 Compute AGI, taxable income, and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified business income (non-service income) under Section 199A. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and 17 Standard Deduction Table. Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Amount $ 151,041 AGI Taxable income $ 107,653 Total tax liability $ 16,068 10 11 12 13 14 15 16 Taxable Income 107653 Capital Gain 12000 18 Ordinary Income 95653 19 Floor 89450 20 Excess Over Floor 6203 21 Tax Rate 0.22 22 1364.66 23 10294 24 Ordinary Tax 11658.66 25 Capital Gain Tax 1800 26 SE Tax 4709 27 Total Tax 18167.66 28 Child Credit 2000 29 Care Credit 100 30 Total Liability 16067.66
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 18CE
Related questions
Question
Transcribed Image Text:Proofing
Accessibilit
E29
X✓ fx
B
The Chungs are married with one dependent child. They report the following information for 2023:
Schedule C net profit
Interest income from certificate of deposit (CD)
Self-employment tax on Schedule C net profit
Dividend eligible for 15% rate
Lila Chung's salary from Brants Company
Dependent care credit
Itemized deductions
Required:
$ 66,650
2,100
9,418
12,000
75,000
500
31,000
Compute AGI, taxable income, and total tax liability (including self-employment tax). Assume that Schedule C net profit is qualified
business income (non-service income) under Section 199A. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and 17
Standard Deduction Table.
Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Amount
$ 151,041
AGI
Taxable income
$ 107,653
Total tax liability
$ 16,068
10
11
12
13
14
15
16
Taxable Income
107653
Capital Gain
12000
18
Ordinary Income
95653
19
Floor
89450
20
Excess Over Floor
6203
21
Tax Rate
0.22
22
1364.66
23
10294
24
Ordinary Tax
11658.66
25
Capital Gain Tax
1800
26
SE Tax
4709
27
Total Tax
18167.66
28
Child Credit
2000
29
Care Credit
100
30
Total Liability
16067.66
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