In January 2021, you are asked to provide tax advice to Ms. Leslie Garond. She has provided you with the following information about her combined federal and provincial income taxes payable and the income taxes withheld by her employer for the 2019 and 2020 taxation years: Year Тахes Payable Taxes Withheld 2019 2020 $22,000 18,000 $9,500 9,700 For 2021, she estimates that her combined federal and provincial income taxes payable will be $14,000 and that her employer will withhold a total of $9,850 in income taxes. She has asked you whether it will be necessary for her to pay instalments in 2021 and, if so, what the minimum amounts that should be paid are and when they are due. Required: Advise Ms. Garond as to whether or not she is required to make instalment payments for 2021. If instalments are required, calculate the alternative amounts that could be paid under each alternative. Indicate which alternative would be best and the dates (including the year) on which the payments should be made.

In January 2021, you are asked to provide tax advice to Ms. Leslie Garond. She has provided you with the following information about her combined federal and provincial income taxes payable and the income taxes withheld by her employer for the 2019 and 2020 taxation years: Year Тахes Payable Taxes Withheld 2019 2020 $22,000 18,000 $9,500 9,700 For 2021, she estimates that her combined federal and provincial income taxes payable will be $14,000 and that her employer will withhold a total of $9,850 in income taxes. She has asked you whether it will be necessary for her to pay instalments in 2021 and, if so, what the minimum amounts that should be paid are and when they are due. Required: Advise Ms. Garond as to whether or not she is required to make instalment payments for 2021. If instalments are required, calculate the alternative amounts that could be paid under each alternative. Indicate which alternative would be best and the dates (including the year) on which the payments should be made.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 9DQ: LO.2 Osprey Corporation, an accrual basis taxpayer, had taxable income for 2019 and paid 40,000 on...

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Reference Figure 12.15 and use the following information to complete the requirements. A. Determine the federal income tax withholdings amount per monthly pay period for each employee. B. Record the employee payroll entry (all employees) for the month of January assuming FICA Social Security is 6.2%, FICA Medicare is 1.45%, and state income tax is equal to 3% of gross income. (Round to the nearest cent if necessary.)
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?
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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?
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