Nick and Jilly Bearden are married with one son named Dakota who is 3 years old. Nick is an attorney who earned $230,000 annually and Jilly is a stay-at-home mom who makes $26,000 annually from her business of writing greeting cards. In addition to income from their employment, Nick and Jilly have an investment income of $35,000, which includes dividends, interest, and gains. Included in the $35,000 is $13,000 of interest from private activity bonds issued by the City of Olden. In the three years prior to 2020, the Beardens have paid AMT of $9,000. During 2020, the Nick and Jilly decided to adopt a child from Kenya. They incurred $15,000 in qualified adoption expenses in 2020, but the adoption was not finalized until 2021. What is Morgan’s 2020 income tax liability?
Nick and Jilly Bearden are married with one son named Dakota who is 3 years old. Nick is an attorney who earned $230,000 annually and Jilly is a stay-at-home mom who makes $26,000 annually from her business of writing greeting cards. In addition to income from their employment, Nick and Jilly have an investment income of $35,000, which includes dividends, interest, and gains. Included in the $35,000 is $13,000 of interest from private activity bonds issued by the City of Olden. In the three years prior to 2020, the Beardens have paid AMT of $9,000. During 2020, the Nick and Jilly decided to adopt a child from Kenya. They incurred $15,000 in qualified adoption expenses in 2020, but the adoption was not finalized until 2021. What is Morgan’s 2020 income tax liability?
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 64P: Leroy and Amanda are married and have three dependent children. During the current year, they have...
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Nick and Jilly Bearden are married with one son named Dakota who is 3 years old. Nick is an attorney who earned $230,000 annually and Jilly is a stay-at-home mom who makes $26,000 annually from her business of writing greeting cards. In addition to income from their employment, Nick and Jilly have an investment income of $35,000, which includes dividends, interest, and gains. Included in the $35,000 is $13,000 of interest from private activity bonds issued by the City of Olden. In the three years prior to 2020, the Beardens have paid AMT of $9,000. During 2020, the Nick and Jilly decided to adopt a child from Kenya. They incurred $15,000 in qualified adoption expenses in 2020, but the adoption was not finalized until 2021.
What is Morgan’s 2020 income tax liability?
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