Question

In: Accounting

Jack & Mary Jones are married in December 30, 2018, they have no children or dependents....

Jack & Mary Jones are married in December 30, 2018, they have no children or dependents. Their divorce became final on December 31, 2018. Of the Income earned, Jack’s total income is $500,000 but his taxable income is $425,000.  

  1. What is Jack’s Filing Status for 2018?

  2. What is their Marginal Tax Rate for 2018?

  3. What is his Tax Liability for 2018?

  4. What is his Average Tax Rate

  5. What is his effective Tax Rate of taxable income?

  6. If Jack discover he has an additional tax deduction of $40,000 what is his new Marginal Tax Rate?

  7. What is his Tax Savings at the New Rate?

Solutions

Expert Solution

Please refer the following image for the solution:

ekkarill92 answered 10 months ago
Next > < Previous

Related Solutions

Jason and Mary Wells, friends of yours, were married on December 30, 2018. They know you...
Jason and Mary Wells, friends of yours, were married on December 30, 2018. They know you are studying taxes and have sent you an e-mail with a question concerning their filing status. Jason and Mary would each like to file single for tax year 2018. Jason has prepared their taxes both as single and married filing jointly, and he has realized that the couple will get a larger combined refund if they each file single. Jason argues “that it’s not...
This year Jack intends to file a married-joint return with two dependents. Jack received $173,460 of...
This year Jack intends to file a married-joint return with two dependents. Jack received $173,460 of salary and paid $7,850 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid qualified moving expenses of $8,350 and $30,100 of alimony. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) b. Suppose that Jack also reported income of $8,850 from a half share of profits...
Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise...
Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2017. They present you with the following information: Bart Elizabeth Joint Salary $38,000 Business net income $110,000 Interest income 400 1,200 $2,200 Deductions for AGI 2,400 14,000 Medical expenses 10,427 3,358 State income tax 800 1,800 Real estate tax 3,800 Mortgage interest 4,200 Unreimbursed employee expenses 1,200 If they file separately, Bart and Elizabeth will...
Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise...
Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2018. They present you with the following information: Bart Elizabeth Joint Salary $38,000 Business net income $110,000 Interest income 400 1,200 $2,200 Deductions for AGI 2,400 14,000 Medical expenses 10,427 3,358 State income tax 900 1,800 Real estate tax 3,800 Mortgage interest 4,200 Unreimbursed employee expenses 1,200 If they file separately, Bart and Elizabeth will...
Problem 1: John and Mary are married and file a joint return claiming their three children...
Problem 1: John and Mary are married and file a joint return claiming their three children ages 4, 5, and 18, as dependents. Their AGI is $125,400 and their pre credit tax liability is $13, 431. They are not claiming any other tax credits in 2019. Complete the Child Tax Credit Worksheet Parts 1 and 2 to determine John and Mary’s child tax credit for 2019. Problem 2: Jose and Jamie have a 5-year-old child. Jose has a salary of...
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S...
Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S Corporation, which runs a successful burger restaurant. The S Corp has the following activity.  How much is the IRC 199A deduction: Ordinary Income of $500,000 W-2 Wages paid of $120,000 Original cost of qualified property of $400,000
In December of this year, David and Mary, a married couple, redeemed qualified Series David and...
In December of this year, David and Mary, a married couple, redeemed qualified Series David and Mary received proceeds of $10,000 representing principal of $7,000 and interest of $3,000. The qualified higher educational expenses they paid this year totaled $6,000. Their AGI for 2018 is $125,550. What is the amount of interest income that David and Mary can exclude from their income this year? A)$1440 B)$1840 C)$2400 D)$3400
Andy and Sally are married and under 50. They have no dependents. Sally’s salary (Federal withholding...
Andy and Sally are married and under 50. They have no dependents. Sally’s salary (Federal withholding $3,000)                        60,000 Andy’s salary (Federal withholding $3,000)                       45,000 City of Dallas bonds                                                               1,500 Chase Bank Interest                                                                3,000 GM bonds                                                                                 5,000 Take a standard deduction, deduct their personal exemptions, and compute their tax and the tax refund or balance due:
Mary and Bob have been married for 25 years. They are both college professors. Mary (50...
Mary and Bob have been married for 25 years. They are both college professors. Mary (50 years of age) makes $65,000 annually and Bob (60 years of age) makes $75,000 annually. Their oldest daughter is getting married. Bob and Mary would like to either 1) take out a second mortgage on their home (they can get an interest rate of 7 percent) or 2) withdraw funds from their IRAs or 3) sell their rental property. The cost of the wedding...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed...
Jack, age 72, and Sydney, age 60, have been married for 20 years. Jack is unemployed and Sydney earns $20,000. How much can Jack and Sydney contribute to each of their traditional IRA in 2020 respectively? Jack can contribute $   Sydney can contribute $ How will your answers change if Jack is 60 and Sydney is 48 years old now? Jack can contribute $   Sydney can contribute $
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT