The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7). Brock, age 50, and Erin, age 49, are married with three dependent children. They file a joint return for 2022. Their income from salaries totals $50,000, and they received $8,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Brock and Erin's deductions for adjusted gross income amount to $2,500, and they have itemized deductions. totaling $27,000. Table for the standard deduction Filing Status Single Married, filing jointly Married, filing separately Head of household Surviving spouse Standard Deduction Click here to access the tax tables. Calculate the following amounts: a. Gross income $12,950 25,900 12,950 19,400 25,900 b. Adjusted gross income c. Itemized deduction or standard deduction amount d. Taxable income e. Income tax liability (before any credits) 66,000 63,500 ✔ 37,600 X

The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7). Brock, age 50, and Erin, age 49, are married with three dependent children. They file a joint return for 2022. Their income from salaries totals $50,000, and they received $8,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Brock and Erin's deductions for adjusted gross income amount to $2,500, and they have itemized deductions. totaling $27,000. Table for the standard deduction Filing Status Single Married, filing jointly Married, filing separately Head of household Surviving spouse Standard Deduction Click here to access the tax tables. Calculate the following amounts: a. Gross income $12,950 25,900 12,950 19,400 25,900 b. Adjusted gross income c. Itemized deduction or standard deduction amount d. Taxable income e. Income tax liability (before any credits) 66,000 63,500 ✔ 37,600 X

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions

Section: Chapter Questions

Problem 2BCRQ

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Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
Estimating taxable income, tax liability, and potential refund. Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales representative for Planning Associates; 3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of 142. She takes the standard deduction. Calculate her taxable income, tax liability, and tax refund or tax owed for 2018.
Renee and Sanjeev Patel, who are married, reported taxable income of 1,008,000 for 2019. They incurred positive AMT adjustments of 75,000 and tax preference items of 67,500. The couple itemizes their deductions. a. Compute the Patels AMTI for 2019. b. Compute their tentative minimum tax for 2019.
LO.4, 9 Walter and Nancy provide 60% of the support of their daughter (age 18) and son-in-law (age 22). The son-in-law (John) is a full-time student at a local university, and the daughter (Irene) holds various part-time jobs from which she earns 11,000. Walter and Nancy engage you to prepare their tax return for 2019. During a meeting with them in late March 2020, you learn that John and Irene have filed a joint return. What tax advice would you give based on the following assumptions? a. All parties live in Louisiana (a community property state). b. All parties live in New Jersey (a common law state).
LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on its estimated state income tax for the year. During 2019, the company received a 4,000 refund upon filing its 2018 state income tax return. The company filed its 2019 state income tax return in August 2020 and paid the 7,000 state income tax due for 2019. In December 2019, the company received a notice from the state tax commission that an additional 6,000 of income tax was due for 2017 because of an error on the return. The company acknowledged the error in December 2019 and paid the additional 6,000 in tax in February 2020. What is Ospreys 2019 Federal income tax deduction for state income taxes?
Calculate the 2019 tax liability and the tax or refund due for each situation: a. Mark is single with no dependents and has a taxable income of 60,000. He has 9,200 withheld from his salary for the year. b. Harry and Linda are married and have taxable income of 60,000. Harry has 4,250 withheld from his salary. Linda makes estimated tax payments totaling 3,000. c. Aspra is single. His 20-year-old son, Calvin, lives with him throughout the year. Calvin pays for less than one-half of his support and his earned income for the year is 3,000. Aspra pays all costs of maintaining the household. His taxable income is 60,000. Aspras withholdings total 7,800. d. Randy and Raina are married. Because of marital discord, they are not living together at the end of the year, although they are not legally separated or divorced. Randys taxable income is 25,000, and Rainas is 60,000. Randy makes estimated tax payments of 3,500, and Raina has 7,500 in tax withheld from her salary.
During 2019, Carl (a single taxpayer) has a salary of $91,500 and interest income of $11,000. Calculate the maximum contribution Carl is allowed for an educational savings account. $0 $400 $1,000 $2,000 Some other amount
Problem 1-10 The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7) Brock, age 50, and Erin, age 49, are married with three dependent children. They file a joint return for 2023. Their income from salaries totals $52,000, and they received $8,000 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Brock and Erin's deductions for adjusted gross income amount to $2,750, and they have itemized deductions totaling $28,000. Table for the standard deduction Filing Status Single Married, filing jointly Married, filing separately Head of household Surviving spouse Click here to access the tax tables. Calculate the following amounts: a. Gross income Standard Deduction b. Adjusted gross income d. Taxable income $13,850 27,700 13,850 20,800 27,700 c. Itemized deduction or standard deduction amount e. Income tax liability (before any credits) 68,000 65,250 28,000 37,250 4,027 X
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CH Required information [The following information applies to the questions displayed below] Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,975 in investment expenses. They also incur $4,625 of investment interest expense during the year. The Porters' income for the year consists of $169,500 in salary and $3,865 of interest income. a. What is the amount of the Porters' investment interest expense deduction for the year? Investment interest expense deduction