The tax return of person MH for the year 2015. A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

Question

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Answer 1

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

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Answer 2

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

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Answer 3

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

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Answer 4

Question

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

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Answer 5

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Answer 6

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

Answer 7

Chapter 3, Problem 6FPE

a.

Summary Introduction

To determine: The tax return of person MH for the year 2015.

A taxable income is termed to any person's or business' remuneration that is utilized to decide tax liability. The gross income or total income is utilized as the origin to ascertain the amount of taxes an individual or a business owes to the government for the regular tax period.

Answer 8

a.

Expert Solution

Explanation of Solution

Determine the taxable income

Form 1040 is used by majority of the taxpayers. Scholarship used to pay Tuition is tax exempted. The itemized deduction are lower than the standard deduction and will not influence the return.

Taxable=[Adjusted Gross Income−Standard Deduction]=[($1,850+$30,250+$185)−$6,300]=$25,985

Therefore the taxable income is $25,985.

Determine the tax liability

Tax Liability=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$9,22.50+($25,985−$9,225)×15%]=[$9,22.50+$2,514]=$3,436.50

Therefore the taxable liability is $3,436.50.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$3,436.50−$2,600]=$836.50

Therefore the taxable due is $836.50.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50

Therefore the taxes on ordinary taxable income is $2,686.50.

Determine the tax liability

Tax Liability=[Taxes on Ordinary Taxable Income+Taxes on Dividends]=[$2,686.50+($150×15%)]=$2,709

Therefore the taxable liability is $2,709.

Determine the tax due

Tax Due=[Tax Liability−Income Taxes Withheld]=[$2,709−$2,600]=$109

Therefore the taxable due is $109.

Answer 13

b.

Summary Introduction

To determine: The tax return of person MH for the year 2015 with additional information provided.

Answer 14

b.

Expert Solution

Explanation of Solution

Determine the revised adjusted gross income

Revised Adjusted Gross Income=[Gross IncomePart A+Cash Dividends−IRA contribution]=[$32,285+$150−$5,000]=$27,435

Therefore the revised adjusted gross income is $27,435.

Determine the revised taxable income

Revised Taxable Income=[Revised Adjusted Gross Income−Standard Deductions]=[$27,435−$6,300]=$21,135

Therefore the revised taxable income is $21,135.

Determine the ordinary taxable income

Ordinary Taxable Income=[Revised Taxable Income−Cash Dividends]=[$21,135−$150]=$20,985

Therefore the ordinary taxable income is $20,985.

Determine the taxes on ordinary taxable income

Taxes on Ordinary Taxable Income=[Additional Amount+(Taxable Income−Tax Due)×Applicable Tax Rate]=[$922.50+($20,985−$9,225)×15%]=[$922.50+$1,764]=$2,686.50