Robert is a single taxpayer who has an AGI of $145,000 in 2020, his taxable income is $122,000. What is his federal tax liability in 2020? a.) $23,590.50 b.) $8,75400 c.) $29,280.00 d.) $18,719.00 e.) $23,454.50

Robert is a single taxpayer who has an AGI of $145,000 in 2020, his taxable income is $122,000. What is his federal tax liability in 2020? a.) $23,590.50 b.) $8,75400 c.) $29,280.00 d.) $18,719.00 e.) $23,454.50

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter1: The Individual Income Tax Return

Section: Chapter Questions

Problem 8MCQ

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Robert is a single taxpayer who has an AGI of $145,000 in 2020, his taxable income is $122,000. What is his federal tax liability in 2020?

a.) $23,590.50

b.) $8,75400

c.) $29,280.00

d.) $18,719.00

e.) $23,454.50

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