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Required: What is the Lozano's net tax due(refunded) for 2023?

Required: What is the Lozano's net tax due(refunded) for 2023?

FINANCIAL ACCOUNTING
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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Problem 5: Calculate net tax due Saji and Henry Lozano are married for all of 2023 and have an AGI of $130,000, taxable income of $120,000 and calculated income tax liability of $50,000. Their income tax liability in 2022 was $40,000 (And 2022 AGI was $125,000), and they made the minimum amount of withholding and estimated income tax payments to ensure that they will not be subject to any estimated tax penalties. In addition, they had $5,700 withheld from their wages for their portion of Social Security and Medicare taxes and provided you with the following information: • They maintained a home for Saji's dependent 85 year old father. • They have one child, Joshua, who is 15 years old and meets the requirements of a qualifying child. During the year they spend $10,000 on a nanny to watch him while they are both at work (you can assume they make equal amounts of earned income). Required: What is the Lozano's net tax due(refunded) for 2023?
Transcribed Image Text:Problem 5: Calculate net tax due Saji and Henry Lozano are married for all of 2023 and have an AGI of $130,000, taxable income of $120,000 and calculated income tax liability of $50,000. Their income tax liability in 2022 was $40,000 (And 2022 AGI was $125,000), and they made the minimum amount of withholding and estimated income tax payments to ensure that they will not be subject to any estimated tax penalties. In addition, they had $5,700 withheld from their wages for their portion of Social Security and Medicare taxes and provided you with the following information: • They maintained a home for Saji's dependent 85 year old father. • They have one child, Joshua, who is 15 years old and meets the requirements of a qualifying child. During the year they spend $10,000 on a nanny to watch him while they are both at work (you can assume they make equal amounts of earned income). Required: What is the Lozano's net tax due(refunded) for 2023?
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