Question

In: Accounting

the following information is avaiable for Tom and Susan Smith, a married couple filling a joint...

the following information is avaiable for Tom and Susan Smith, a married couple filling a joint return for 2019. Tom is 67 and Susan is 64. They have a son, Sam, who is 27 years old, live with them all year and had 2000 of income. They have the following items for 2019.

Salaries $225,000

City of Fresno bond interest income $1800

Interest income from coporate bond $2200

Rental income (rented for entire year) $50000

Rental expense (interest, tax, repair) $20000

Loss on sale of personal use vehicle $3000

Personal bad debt - loan to a friend $7000

Tom contributed to IRA account $7000

Itemized deduction $25000

Federal tax withold on wages $30000

Caculate the following:

1. what is the amount of ther AGI?

2. What is the amount of their taxable income?

3. What is the amount of federal taxes?

4. What is the amount of their child and a dependent tax credit?

5. what is their tax balance due or refund?

Solutions

Expert Solution

    Adjusted Gross income          
           $  
   Salaries       225000  
              
   city of fresh bond interest income       1800  
              
   interest income from corporate bond       2200  
              
   rental income   50000      
   rental expenses    20000   30000  
              
1   AGI-=   $   259000  
              
              
   Taxable Income   AGI $   259000  
   less           
   deduction       24400  
   contribution to IRS       6000  
              
2   TAXABLE INCOME   $   228600  
              
3   FEDERAL TAXES FOR 2019=        43213  
   28765+(228600-168400)*0.24          
              
              
5   TAX REFUND/payable       43213  
   LESS:-TAX PAID       30000  
   Tax payable        13213  
              
4   they will not be entitled to child and dependent tax credit as age of SAM   should be under 17 and also he does not qualify dependent test also as he is more than 24 years old           

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

the following information is available for tom and susan smith, a married couple filing a joint...
the following information is available for tom and susan smith, a married couple filing a joint return, for 2019. tom is 67 and susan is 64. they have one son, sam, who is 27 years old, lived with them all year and had 2,000 of income. they had the following items for 2019: salaries $175,000 city of fresno bond interest income 1,500 interest income from corporate bond 900 rental income (rented the entire year) 35,000 rental expenses (interest, taxes, repairs)...
Susan and Stan Britton are a married couple who file a joint income tax return, where...
Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $330,000. Do not round intermediate calculation. What is their federal tax liability? Round your answer to the nearest cent. $   What is their marginal tax rate? Round your answer to two decimal places.     % What is their average tax rate? Round your answer to two...
The following information is available for Bob and Brenda Horton, a married couple filing a joint...
The following information is available for Bob and Brenda Horton, a married couple filing a joint return for 2019. Both Bob and Brenda are 32 and have three dependents. Salaries                                                  200,000 Interest income from NYS bonds                 10,000 Interest income from US bonds     3,000 Long term capital gain                                   7,000 Short term capital loss                                  12,000 Deductible IRA contributions                          4,000 Itemized deductions                                   14,000                                                        Withholding of Federal tax                           50,000 Compute their AGI, taxable income, and tax due or refund due.
The following information is available for Bob and Brenda Horton, a married couple filing a joint...
The following information is available for Bob and Brenda Horton, a married couple filing a joint return for 2020. Bob is 61 and Brenda is 60.  They have fully supported their son, Charles age 31 (a US citizen) who lived with Bob and Brenda all of 2020. Bob and Brenda fully supported Charles for all of 2020. Charles only source of income was $3,990 from unemployment. The following information relates to Bob and Brenda for 2020:       Salary – Bob                                               $80,000       Salary –...
The Smith couple files a joint return and have the following infor for 2020 Mortgage interest...
The Smith couple files a joint return and have the following infor for 2020 Mortgage interest on their personal residence $6,000 Property taxes paid on their personal residence $2,500 Alimony payment made for divorce that was finalized in 2017 $12,000 Moving expenses $7,000 Business expenses from Mrs smith's small business $14,000 State income taxes paid $5,000 Investment interest $7,500 Personal casualty loss in federal disaster area $11,200 Unreimbursed employee expenses for Mr Smith $2,500 Depreciation on rental cabin primarily used...
            Phil & Susan, each age 60, are married filing a joint return. They have no...
            Phil & Susan, each age 60, are married filing a joint return. They have no dependents. Susan has wages of $34,000. Phil doesn’t work due to a disability, but he’s a buyer and seller of stocks on the internet. The couple’s stock transactions for the year are detailed below. They also had $2,300 of qualifying dividends. Fill in the last 2 columns in the table below. Security or fund* Date acquired Date sold Cost Sale price Gain or loss...
Tariq and Hanan are a married couple and file joint return with AGI of $275,500 for...
Tariq and Hanan are a married couple and file joint return with AGI of $275,500 for 2019.They paid $25,000 of mortgage interest, $12,000 of unreimbursed medical expenses, $5,000 of property taxes, $3,500 interest on a credit card, and $15,000 of charitable contributions for the year. How much their itemized deductions for 2019? Samira, who is single and 48 years old, itemizes her deductions, and has an AGI of $100,000. Samira provided the following information about her expenditures for 2019:             Interest...
Joseph P. Smith and his wife Gladys G. Smith are married and file a joint return...
Joseph P. Smith and his wife Gladys G. Smith are married and file a joint return for 2016. Joseph’s social security number is 499-99-4321 and he is 44 years old. Gladys social security number is 637-44-9876 and she is 43 years old. They live at 1502 Seaman Court, Flemington, NJ 08822. Mr. Smith is a construction worker employed by LLL Construction. His form W-2 from LLL Construction showed the following:                                     Wages                                     $42,000                                     Withholding (federal)                 4,500 The Smiths...
Jack and Kendra are married and file a joint return. The couple has a modified AGI...
Jack and Kendra are married and file a joint return. The couple has a modified AGI of $59,000. Jack contributed $2,000 to his traditional IRA for the tax year. Neither Jack nor Kendra have ever taken a distribution from a retirement plan. Assuming there is no limitation based on their tax liability, what is the amount of their Saver's Credit? $0   $200   $400   $1,000
Case Study - Insurance Tom and Nancy Smith are married, with 2 children •Nancy is 38,...
Case Study - Insurance Tom and Nancy Smith are married, with 2 children •Nancy is 38, Tom 42 •Their children, Emily and Brian, are 16 and 18 respectively •Brian will be going to College this fall •Nancy is a CPA at a local accounting firm with an annual salary of $200K •Hank teaches at the local high school where he coaches football and makes around $100K annually •Nancy volunteers on the Board of Directors of a local Nonprofit •Both Hank...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT