PLEASE HELP ME UNDERSTAND AND USE THE INFORMATION PROVIDED WITH THE FOLLOWING THANK YOU! IT WILL NOT MAKE SENSE TO ME IF INFORMATION IS USED FROM A DIFFERENT QUESTION. Lillian and Jackson Clark are married in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes. In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds, and dividends of $400 on common stocks. At the end of 2018, the Clarks sold two stocks, A and B. Stock A was sold for $700 and purchased four months earlier for $800. Stock B was sold for $1,500 and bought 3 years earlier for $1,100. Although his company's pension plan covers Jackson, he plans to contribute $5,500 to a traditional deductible IRA for 2018. In addition, their only child, Carter, age 2, received (as his sole source of income) dividends of $200 from Hershey's stock. PLEASE EXPLAIN THOROUGHLY FOR A BETTER UNDERSTANDING Using the Clarks' information, determine the total amount of their itemized deductions. The Clarks are married, filing jointly, and have the standard deduction of $24,000. Should they itemize or take the standard deduction? The Clarks saved how much by using standard vs. itemized deduction? Compose a schedule computing the tax on a married joint return for Jackson and Lillian Clark for the year ended December 31, 2018, giving them the smallest tax liability.
PLEASE HELP ME UNDERSTAND AND USE THE INFORMATION PROVIDED WITH THE FOLLOWING THANK YOU! IT WILL NOT MAKE SENSE TO ME IF INFORMATION IS USED FROM A DIFFERENT QUESTION. Lillian and Jackson Clark are married in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes. In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds, and dividends of $400 on common stocks. At the end of 2018, the Clarks sold two stocks, A and B. Stock A was sold for $700 and purchased four months earlier for $800. Stock B was sold for $1,500 and bought 3 years earlier for $1,100. Although his company's pension plan covers Jackson, he plans to contribute $5,500 to a traditional deductible IRA for 2018. In addition, their only child, Carter, age 2, received (as his sole source of income) dividends of $200 from Hershey's stock. PLEASE EXPLAIN THOROUGHLY FOR A BETTER UNDERSTANDING Using the Clarks' information, determine the total amount of their itemized deductions. The Clarks are married, filing jointly, and have the standard deduction of $24,000. Should they itemize or take the standard deduction? The Clarks saved how much by using standard vs. itemized deduction? Compose a schedule computing the tax on a married joint return for Jackson and Lillian Clark for the year ended December 31, 2018, giving them the smallest tax liability.
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 1BCRQ
Related questions
Question
PLEASE HELP ME UNDERSTAND AND USE THE INFORMATION PROVIDED WITH THE FOLLOWING THANK YOU! IT WILL NOT MAKE SENSE TO ME IF INFORMATION IS USED FROM A DIFFERENT QUESTION.
Lillian and Jackson Clark are married in their early 20s living in Los Angeles. Jackson Clark earned $93,000 in 2018 from his sales job. During the year, his employer withheld $11,685 for income tax purposes.
In addition, the Clarks received interest of $350 on a joint savings account, $750 interest on tax-exempt municipal bonds, and dividends of $400 on common stocks. At the end of 2018, the Clarks sold two stocks, A and B. Stock A was sold for $700 and purchased four months earlier for $800. Stock B was sold for $1,500 and bought 3 years earlier for $1,100. Although his company's pension plan covers Jackson, he plans to contribute $5,500 to a traditional deductible IRA for 2018. In addition, their only child, Carter, age 2, received (as his sole source of income) dividends of $200 from Hershey's stock.
PLEASE EXPLAIN THOROUGHLY FOR A BETTER UNDERSTANDING
- Using the Clarks' information, determine the total amount of their itemized deductions.
- The Clarks are married, filing jointly, and have the standard deduction of $24,000. Should they itemize or take the standard deduction?
- The Clarks saved how much by using standard vs. itemized deduction?
- Compose a schedule computing the tax on a married joint return for Jackson and Lillian Clark for the year ended December 31, 2018, giving them the smallest tax liability.
| Expenses | Cost |
|---|---|
| Medical and Dental expenses (unreimbursed) ------- ARE THESE CONSIDERED ITEMIZED? ------- | $200 |
| State and local property taxes | $831 |
| Interest paid on home mortgage | $4,148 |
| Charitable contributions | $1,360 |
| Total | $6,539 |
In addition, Reimbursed Travel Costs Jackson incurred for an out-of-town business trip:
| Expenses | Cost |
|---|---|
| Airline ticket | $250 |
| Taxis | $20 |
| Lodging | $60 |
| Meals (as adjusted to 50 percent of cost) | $36 |
| Total | $366 |
Transcribed Image Text:2018 Individual Tax Rate Schedules
Single
If taxable
income is:
over -
$0
$9,525
$38,700
$82,500
$157,500
$200,000
$500,000
But not
over -
$9,525
$38,700
$82,500
$157,500
$200,000
$500,000
$19,050
$77,400
$165,000
$315,000
$400,000
$600,000
The Tax is:
But not
over -
$19,050
$77,400
$165,000
$315,000
$400,000
$600,000
10%
$952.50 +12%
$4453.50 +22%
$14089.50 +24%
$32089.50 +32%
Married filing jointly / Qualifying widow(er)
If taxable
income is:
over -
$0
$45689.50 +35%
$150689.50 +37%
The Tax is:
.10%
$1905.00 + 12%
$8907.00 +22%
$28179.00 +24%
$64179.00 + 32%
$91379.00 + 35%
$161379.00 +37%
of the
amount
over -
$0
$9,525
$38,700
$82,500
$157,500
$200,000
$500,000
of the
amount
over -
$0
$19,050
$77,400
$165,000
$315,000
$400,000
$600,000
Head of Household
If taxable
income is:
over -
$0
$13,600
$51,800
$82,500
$157,500
$200,000
$500,000
But not
over -
$13,600
$51,800
$82,500
$157,500
$200,000
$300,000
$157,500
$200,000
$500,000
Married filing separately
If taxable
income is:
over -
$0
$9,525
$38,700
$82,500
But not
over -
$9,525
$38,700
$82,500
$157,500
$200,000
$300,000
The Tax is:
10%
$1360.00 + 12%
$5944.00 +22%
$12698.00 +24%
$30698.00 +32%
$44298.50 + 35%
$149298.00 +37%
The Tax is:
.10%
$952.50 +12%
$4453.50 +22%
$14089.50 +24%
$32089.50 +32%
$45689.50 +35%
$80689.50 +37%
of the
amount
over -
$0
$13,600
$51,800
$82,500
$157,500
$200,000
$500,000
of the
amount
over -
$0
$9,525
$38,700
$82,500
$157,500
$200,000
$300,000
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