In December 2020, Ben and Jeri (married filing jointly) have a long-term capital gain of $55,000 on the sale of stock held for 4 years. They have no other capital gains and losses for the year. After the standard deduction, their ordinary income for the year, before the capital gain, is $70,000, making their total income for the year $125,000. In 2020, married taxpayers who file jointly pay tax of $8,008 on the first $70,000 of ordinary taxable income and 15% on long-term capital gains above $80,000. What is their total tax liability? a.$16,258.00 b.$14,758.00 c.$14,949.50 d.$19,080.00

Q: Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2019. He also received rental…

A: Payroll:   The total payment that a company is required to pay to its employee for the services…

Q: Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they…

A: Alternative minimum taxable income is the income on which a flat tax rate is applied. It usually…

Q: Fred, age 67, and Freda, age 66 and blind, are married and will file a joint return for 2020.…

A: Income from Wages and Salaries are fully taxable and reported in the return. Interest income is also…

Q: Denise is divorced and files a single tax return claiming her two children, ages 7 and 9, as…

A: Given, AGI = $ 81,500 Dependent children = 2 Age = 7& 9 Tax return TYPE = Single

Q: Akiko, a single taxpayer, incurred higher-than-expected expenses in her active business in 2020. In…

A: An ordinary loss can offset the ordinary income and capital gain (both long term and short term). An…

Q: For 2020, Erika and Matthew, ages 62 and 68, respectively, are married taxpayers who file a joint…

A: The following calculations are done for Erik and Matthew who file a joint tax return.

Q: Elliot operates his clothing store as a single member LLC (which he reports as a sole…

A: QBI deduction applies to individuals including owners of a sole proprietorship, partnership, trusts,…

Q: Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a​ part-time…

A: Lucy is 17 years below 19 years of age and hence qualified for children tax rate  Wages =9000…

Q: Jermaine and Kesha are married, file a joint tax return, haveAGI of $75,000, and have two children.…

A: Taxable Income: The amount of adjusted gross income that is liable to be taxed is known as taxable…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: It is assumed that depreciation on computer and f&f is 40% per annum

Q: Ruth and Gaston file a joint tax return. Ruth earned $14,000 during the year while Gaston earned…

A: Given the following information: Ruth earned $14,000 during the year Gaston earned $8,000 for the…

Q: Jermaine and Kesha are married, file a joint tax return, haveAGI of $75,000, and have two children.…

A: American Opportunity credit is also known as American Opportunity Tax Credit (AOTC) is a credit for…

Q: In 2021, Sheryl is claimed as a dependent on her parents' tax return. Her parents report taxable…

A: In this case 7000 $ is an unearned income,and it exceeded 2200 limit.

Q: Sandra and Nick, married taxpayers filing a joint return, have $180,000 in taxable income in 2019.…

A: For the 2019 the standard deduction for married filing jointly is $ 24,400.…

Q: Jack files married filing separately, and in 2020 his taxable income is $278,300, as computed below.…

A: The amount being paid to the tax authority or government as their revenue is known as tax. It is…

Q: Jacob, age 42, and Jane Brewster, age 44, are married and file a joint return in 2020. The Brewsters…

A: Alternative minimum tax (AMT) refers to the minimum amount of tax that an individual supposed after…

Q: Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income of…

A: ANSWER Amount $ 500 of state income tax refund will be included in gross income of 2020.   Working…

Q: Sean, who is single, received social security benefits of $8,480, dividend income of $12.610, and…

A: In the given scenario, the combined gross income for Sean is :  = Social Security benefit + Dividend…

Q: L. A. and Paula file as married taxpayers. In August of this year, they received a $6,740 refund of…

A: a. Because they did not itemize their deductions . L.A. and Paula received no benefit from the…

Q: George is single and age 56, has AGI of 265,000, and incurs the following expenditures in 2019( not…

A: SOLUTION- GIVEN, GEORGE IS SINGLE AND AGE IS 56. AGI = 265000

Q: Huy is single, age 40, and operates a sole proprietorship.In 2020, Huy's sole proprietorship…

A: It is the deduction available on the qualified business income subject to the provisions of IRS.…

Q: How much is the total donor's tax due of Spouses Oredan?

A: Donation tax is the tax which has to be charged on the donations made during the year and the…

Q: In 2019, Gloria, a single taxpayer, receives a Schedule K-1 from a partnership she is invested in.…

A: QBI deduction:   QBI is the net number of qualified items of income, gain, deduction and loss from…

Q: 0, he receives $10,000 in Social Security benefits. In addition, he receives $6,000 in cash…

A: Information Given -:_ Social Security Benefits       = $10000. Cash Dividends on Stocks       =…

Q: During 2019​ ,Dale  incurs the following deductible​ expenses: $1,400 in state income​ taxes, $3,400…

A: Calculation of Dale's Taxable Income Particulars   Amount AGI   $38,000 Less: Itemized…

Q: ll of 2020 after having completed her junior year during the spring of that year.  Both Devona and…

A: Calculation of American Opportunity credit available to Jerome and Kelly for 2020 American…

Q: Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the…

A: W2 wages shall be deducted from business income to arrrve at Gross business income from Just…

Q: Leslie is a single taxpayer who is under age 65 and in good health. For 2018, she has a salary of…

A: Requirement 1: Determine the amount of adjusted gross income. Individual taxpayers compute their tax…

Q: Ian, 37, and Isabella, 36, are married and file a joint tax return.  They have one child, Ingrid…

A: Income Tax - It is tax imposed by the government on company or individual with respect to their…

Q: 50,000 by November 30 and will have no other gross income.   In addition, it will have no deductions…

A: The comparison of overall taxes as,

Q: Randy and Rachel are eligible for a $fill in the blank 1 adoption credit in 2020. b.  Assume the…

A: a. Result: Maximum adoption tax credit available is up to $14,300 per adopted child in 2020.

Q: William and Maria Smith are married couple filing jointly. They have no children and report the…

A: Alternative Minimum Tax (AMT) Liability is the excess of Alternative Minimum Tax (AMT) over the…

Q: Vito is the sole shareholder of Vito, Inc. He is also employed by the corporation. On June 30, 2020,…

A: The shareholder loan is a debt like financing facility provided by the shareholders to the…

Q: This year, Paula and Simon (married filing jointly) estimate that their tax liability will be…

A: Not all underpaying taxpayers face a penalty payment, which may be waived under several scenarios,…

Q: Jen and Cassian earned $650,000 in salaries and $36,000 in interest income during the year. They had…

A: In the context of the given question, we are required to compute Jen and Cassian's taxes due or…

Q: Richard and Alice are divorced and under the terms of their written divorce agreement signed on…

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Wilson and Joan, both in their 30s, file a joint income tax return for 2020. Wilson's wages are…

A: SOLUTION- PENSION IS A CONTRACT FOR A FIXED SUM TO BE PAID REGULARLY TO A PERSON , TYPICALLY…

Q: Sally and Jim are married and have taxable income in 2019 of $700,000. If they could file their…

A: You have the option to file either as single individual Filers or as married couples. So marriage…

Q: Myrna and Geoffrey filed a joint tax return in 2019. Their AGI was $85,000, and itemized deductions…

A: The Tax benefit rule U/s 111 states if any deduction is claimed in prior year and subsequently it…

Q: Gary and Wendy are married and file a joint tax return claiming their seven children, ages 7,9, 11,…

A: Personal Equity Plan: Capital gains on the investment of shares of publicly listed companies is tax…

Q: ammond are married taxpayers filing a joint return. The couple have two dependent children. Susan…

A: Adjusted Gross Income is the term used in the calculation of gross income for all taxable sources…

Q: Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from his salary.…

A: It is given that, Greg earned $25,500 in 2021 and had $1,500 of federal income taxes withheld from…

Q: Toni and Beyonze are married and file jointly. During 2020, they paid tuition for their daughter’s…

A: Given information is: Filing status = married and jointly Tuition fees paid for daughter = $23000…

Q: Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have…

A: For the purpose of calculation of tax liability, itemized deductions are those deductions that can…

Q: Sean, who is single, received social security benefits of $8,000, dividend income of $13,000, and…

A: Given information is: Social security benefits = $8000 Dividend Income = $13000 Interest Income =…

Q: ngle taxpayer living in Seattle, Washington, with adjusted gross income for the 2020 tax year of…

A: In the given case, Martin’s adjusted gross income for the year is $59,000. He has paid various…

Q: Dermot and Melony are married, file a joint tax return and have AGI of $120,000. Their daughter…

A: Tax credit refers to the concept of computing the desired amount of money an individual or taxpayers…

Q: Diego, age 28, married Dolores, age 27, in 2019. Their salaries for the year amounted to $80,000 and…

A: Tax liability: When the assessee is earned the income of among any of the sources of income then its…

Q: In 2021, Lisa and Fred, a married couple, had taxable income of $321,000. If they were to file…

A: Tax liability couple:-  Total income = $321,000 $19,900 ×10%                      = $1,990 $61,149 ×…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.