Problem 14-13 (Static) [LO 14-3, 14-4, 14-5]Cole, an unmarried individual with no dependents, has the following income items:Interest income$ 24,20050.600Schedule C net profitCole has $9.300 Itemized deductions and the Schedule C Income is qualified business Income (non-service).Required:Compule Cole's income tax. Assume the laxable year is 2022. Use Individual Tax Rule Schedules and Standard Deduction Table.Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.AGITaxable incomeIncome TaxAmount$ 71.225

Adjusted gross income:Adjusted gross income refers to the income that is determined after adjusting…

Answered: Problem 14-13 (Static) [LO 14-3, 14-4,…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 31CE

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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.
Kana is a single wage earner with no dependents and taxable income of $205,000 in 2019. Her 2018 taxable income was $155,000 and tax liability was $31,490. Calculate the following (note: this question requires the use of the tax tables in Appendix A): Kana's 2019 income tax liability $_______________ Kana's minimum required 2019 annual payment necessary to avoid penalty $______________
Estimating taxable income, tax liability, and potential refund. Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned 55,000 as a sales representative for Planning Associates; 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 2018.
Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has 800 in dividends income and 1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is 10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is 500, and her interest income is 125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions.
Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income increases to $41,000, she would pay income taxes of $4,884. What is Melodie's marginal tax rate? 19.75 22.00 18.50 12.00 Some other amount
Problem 8-66 (LO 8-3) (Algo) Alice is single and self-employed in 2022. Her net business profit on her Schedule C for the year is $186,000. What are her self-employment tax liability and additional Medicare tax liability for 2022? Note: Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Self-employment tax liability Additional medicare tax liability $ 0
Exercise 12-24 (LO. 6) In 2022, Miranda records net earnings from self-employment of $168,500. She has no other income. Determine the amount of Miranda's self-employment tax and her AGI income tax deduction. In your computations, for the tax liability, round interim amounts to two decimal places and the final answer to the nearest whole dollar. For the AGI deduction, if necessary, use amounts that have been rounded to the nearest dollar. Miranda's self-employment tax is X and she has a $ X deduction for AGI. Feedback ✓ Check My Work The tax on self-employment income is levied to provide Social Security and Medicare benefits (old age, survivors, and disability insurance and hospital insurance) for self-employed individuals.
Income Tax Credits (LO. 6) Refer to Exhibit 8-5 and 8A-1 SCHEDULE EIC (EARNED INCOME CREDIT) 2018 EARNED INCOME CREDIT TABLE to answer the following questions. Determine the total allowable 2018 earned income credit in each of the following situations: a. Rina is single and earns $6,800 in salary for the year. In addition, she receives $2,200 in unemployment compensation during the year. b. C. Lachlan is single with one dependent child. During the year, he earns $8,000 as a waiter and receives alimony of $10,000 and child support of $5,000. Zorica is a single parent with two dependent children. She earns $19,000 from her job as a mechanic. She also receives $3,000 in child support from her ex-husband. d. Elliot and Pam are married and have three dependent children. Elliot and Pam earn $12,000 and $9,000 from their jobs, respectively. They receive $800 in interest and $1,000 in dividend income. Assume the taxpayer files a joint return.
Exercise 7-30 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $10,600 in 2023. The loss is carried forward to 2024. For 2024, Emily's income tax information before taking into account the 2023 NOL is as follows: Adjusted gross income Itemized deductions*: Medical [$6,360 - (7.5% x $53,000)] Taxes Interest expense on home mortgage Taxable income $2,385 7,950 15,900 $53,000 (26,235) $26,765 * The 2023 single standard deduction is $13,850; Emily's itemized deductions will exceed the 2024 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2024, and what is her adjusted gross income and her taxable income? Emily may use $ of the NOL, resulting in adjusted gross income of $ $ and taxable income
Exercise 7-30 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $11,120 in 2023. The loss is carried forward to 2024. For 2024, Emily's income tax information before taking into account the 2023 NOL is as follows: Adjusted gross income. Itemized deductions": Medical [$6,672- (7.5% x $55,600)] Taxes Interest expense on home mortgage Taxable income Emily may use s 5,838 X $2,502 8,340 16,680 * The 2023 single standard deduction is $13,850; Emily's itemized deductions will exceed the 2024 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2024, and what is her adjusted gross income and her taxable income? 11,120 of the NOL, resulting in adjusted gross income of $ 44,480✔ and taxable income Feedback $55,600 (27,522) $28,078 Check My Work A net operating loss (NOL) in a particular tax year would produce no tax benefit if the Code did not provide for the carryback and carryforward of such losses to profitable years. To…
Exercise 11-3 (LO. 6) In 2020, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $ 9,760 Tax liability (round to the nearest dollar): $ Feedback 10,155 X
Required information Problem 8-50 (LO 8-1) (Static) [The following information applies to the questions displayed below.] Lacy is a single taxpayer. In 2021, her taxable income is $42,000. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Her $42,000 of taxable income includes $5,000 of qualified dividends.

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