Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates (LO. 1) In 2020, Rory earns $70,000 per year as a college professor, paying $5,891 in federal income taxes. Latesia is a marketing executive with a salary of $140,000 who paid $21,919 in federal taxes. In addition, Latesia collected $50,000 on a life insurance policy. Both taxpayers are single and take the 2020 standard deduction. Compute the following for the two taxpayers. Note: Round the total taxes to two decimal places. Enter percentages to one decimal. a. With respect to the FICA taxes, calculate their total FICA liability. Hint: OASDI: 6.2% with a cap of $137,700; MHI: 1.45% d. Based on the data provided, compute Rory and Latesia's effective FICA tax rate for 2020. Rory's effective tax rate: 7.65 V % Latesia's effective tax rate: X %

Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates (LO. 1) In 2020, Rory earns $70,000 per year as a college professor, paying $5,891 in federal income taxes. Latesia is a marketing executive with a salary of $140,000 who paid $21,919 in federal taxes. In addition, Latesia collected $50,000 on a life insurance policy. Both taxpayers are single and take the 2020 standard deduction. Compute the following for the two taxpayers. Note: Round the total taxes to two decimal places. Enter percentages to one decimal. a. With respect to the FICA taxes, calculate their total FICA liability. Hint: OASDI: 6.2% with a cap of $137,700; MHI: 1.45% d. Based on the data provided, compute Rory and Latesia's effective FICA tax rate for 2020. Rory's effective tax rate: 7.65 V % Latesia's effective tax rate: X %

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 27P

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ESTIMATING TAXABLE INCOME, TAX LIABILITY, AND POTENTIAL REFUND. Hannah Owens is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales assistant for Business Solutions: 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 2015.
LO.5 During 2019, Greg Cruz (1401 Orangedale Road, Troy, MI 48084) works for Maple Corporation and Gray Company. He earns 90,000 at Maple Corporation, where he is a full-time employee. Greg also works part-time for Gray Company for wages of 50,000. a. Did Greg experience an overwithholing of FICA taxes? Write a letter to Greg and a memo for the tax files in which you explain your conclusion. b. Did Maple Corporation and Gray Company overpay the employers portion of FICA? Explain.
LO.2 Oak Corporation has the following general business credit carryovers. If the general business credit generated by activities during 2019 equals 36,000 and the total credit allowed during the current year is 60,000 (based on tax liability), what amounts of the current general business credit and carryovers are utilized against the 2019 income tax liability? What is the amount of unused credit carried forward to 2020?
LO.5 Beige Corporation has a fiscal year ending April 30. For the year ending April 30, 2018, Beige generated taxable income of 1,200,000. What is Beige Corporations tax liability for this period?
LO2 Joyce Lee earns 30,000 a year. Her employer pays a matching Social Security tax of 6.2% on the first 118,500 in earnings, a Medicare tax of 1.45% on gross earnings, and a FUTA tax of 0.6% and a SUTA tax of 5.4%, both on the first 7,000 in earnings. What is the total cost of Joyce Lee to her employer? (a) 32,295 (b) 30,000 (c) 30,420 (d) 32,715
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).
29 - Miray Demir Çelik Anonim Şirketi's 2019 commercial profit is 400.000 TL. Its tax-exempt income is 30.000 TL and its legally unacceptable expenses are 50.000 TL. What is the company's tax base?A) 270,000B) 420,000C) 320,000D) 380,000E) 400,000
35. Marco is a medical doctor. Inday’s total gross receipts from year 2020 amounted to Php 4,250,000.00 while the cost of service and operating expenses were Php 1,150,000.00 and Php 500,000.00, respectively. He opted to avail of the 8% preferential taxation in her 1st Quarter ITR. What is Marco's correct income tax payable?
Ma3. All final answers, unless otherwise indicated, have been rounded to the nearest $10. Also, assume that each question is independent of any other question. please answer questions using tax rules in effect for the year 2021, but ignoring temporary Covid-10 related changes. 8. During the year, Dan Davis, a single taxpayer, pays $2,200 of interest on a qualified student loan. Assume that Dan has adjusted gross income of $65,000. What student loan interest deduction may Dan claim on his Form 1040 for the year? A. $2,500 B. 2,200 C. 1,100 D. 0 E. None of the above 9. A contribution made to which of the listed entities is not deductible? A. Boy Scouts of America B. Oxford University, England C. Virginia Commonwealth University D. Society for the Prevention of Cruelty to Animals E. All of the above are deductible
The FICA Tax (LO 9.3) (COVID provisions) Lamden Company paid its employee Trudy, wages of $61,500 in 2020. Of this amount, $2,400 was allocated to sick pay for two weeks due to Trudy’s spouse contracting COVID and Trudy being quarantined. Trudy spent another 10 weeks at home caring for their children that were unable to attend school. Lamden allocated $10,000 in wages to family leave. Lamden allocated $6,000 of Trudy’s wages to the employee retention credit (5 weeks). The allocation of health care costs is $200 per week. Compute Lamden’s: Round your answers to two decimal places. 1. Credit for sick pay $ 2. Credit for family leave $ 3. Employee retention credit $
5.Which of the following is included in gross income? Loans Scholarships for room and board Economic impact payments in 2020 Health insurance proceeds None of the above 19.Nomi is in the highest individual tax bracket and receives $375 in qualified dividends from Omega Corp. Nomi’s tax liability (not including any net investment income tax) with respect to these dividends is: $0 $277.20 $100.00 $75.00 $50.00
N4 Samuel invested $10,000 a year into his retirement plan from his before tax earnings (that is, he received a deduction for these contributions and was not taxed on the income). His employer contributed $5,000 a year to Samuel’s retirement fund. After 30 years of contributions, Samuel retires and receives a distribution of $900,000, the balance in his retirement fund. Samuel must include what amount in gross income? Group of answer choices $ 0 $450,000 $600,000 $900,000