Question

In: Accounting

Georgette is single, age 66, with 2 dependent children under the age of 12, and 2...

Georgette is single, age 66, with 2 dependent children under the age of 12, and 2 dependents over age 18 and in college.

Her income is as follows:

Wages from employment $85,000 with taxes withheld of $6,400

Interest from Regions bank $100

Interest from city of Jackson Municipal Bonds $800

Insurance Life Insurance proceeds from dead brother $100,000

Gambling Winnings $4,500

Capital loss on sale of IBM stock $6,000

?

?

He also incurred the following:

?

Medical expenses (before 10%-of-AGI floor)

$27,000

Interest on home mortgage

15,500

State income tax

7,500

State sales tax

4,500

Real estate tax

8,600

Charitable contribution

6,500

Gambling losses 8,000
Uninsured tornado damage to property 25,000

?

Directions: Compute the following showing the details. Use the text editor to show computations where applicable to receive credit.

What is her most favorable filing status?

What is her AGI?

What is her Taxable Income?

What is her marginal tax rate?

What is the tax?

What is the amount of the refund or taxes due?

?

?

?

?

Solutions

Expert Solution

SOLUTION

What is her most favorable filing status?

Ans: Single

What is her AGI?

Ans: Caculation of AGI Taxabe Non-Taxable

1.Wages from employment $85,000

taxes withheld of $6,400

Interest from Regions bank $100   

Interest from city of Jackson Municipal Bonds $800

Insurance Life Insurance proceeds from dead brother $100,000

Gambling Winnings $4,500

Capital loss on sale of IBM stock - $6,000

Adjusted Gross Income 83,600   

What is her Taxable Income?

Ans.: I Adjusted Gross Income Deductible Non-deductible

$ 83,600

itemized Deductions:

Medical Expenses 20,730 6,270 (7.5% of AGI)

Taxes paid:

State Income Tax 7,500

State Sales Tax 4,500

Real Estate Tax 8,600 16,100

Interest paid on home mortgage 15,500

Charitable Conributions paid 6,500

Gambing Loss 8,000

Uninsured tornado damage to property 25,000

Total Itemised deuctions 91830

Personal Exemption @4,050 X 5 family members 20250

Taxable income is Less than deductions and exemptions So, Taxable Income 0

What is her marginal tax rate?

Ans: As the taxable income is nill, tax thereon is Nil, so marginal tax rate is also Nil

What is the tax?

Ans.: Nil

What is the amount of the refund or taxes due?

Ans: Tax due is Nil Tax Refund will be $6400 which has been withheld from wages from Employmnt.   


Related Solutions

Georgette is single, age 66, with 2 dependent children under the age of 12, and 2...
Georgette is single, age 66, with 2 dependent children under the age of 12, and 2 dependents over age 18 and in college. Her income is as follows: Wages from employment $85,000 with taxes withheld of $6,400 Interest from Regions bank $100 Interest from city of Jackson Municipal Bonds $800 Insurance Life Insurance proceeds from dead brother $100,000 Gambling Winnings $4,500 Capital loss on sale of IBM stock $6,000 ? ? He also incurred the following: ? Medical expenses (before...
Phan Mai is single with three dependent children under age 17. Phan estimates her wages for...
Phan Mai is single with three dependent children under age 17. Phan estimates her wages for the year will be $36,000, her dependent care expense will be $6,300 and her itemized deductions will be $11,000. Assuming Phan files as head of household, use form W-4 to determine the number of withholding allowances Phan should claim. Use the 2017 w-4 form
2019- W2 Form Phan Mai is single with two dependent children under age 17. Phan estimates...
2019- W2 Form Phan Mai is single with two dependent children under age 17. Phan estimates her wages for the year will be $42,000 and her itemized deductions will be $14,000. In the previous year, Phan had a small tax liability. Assuming Phan files as head of household, use Form W-4 to determine the number of withholding allowances Phan should claim. If an amount is zero, enter "0".
Mark is a single dad with two dependent children: Joey, age 7, and Sonny, age 3....
Mark is a single dad with two dependent children: Joey, age 7, and Sonny, age 3. He has an AGI of $39,000 and paid $4,300 to a qualified daycare center for the two children. What amount can Jamison receive for the child and dependent care credit?
Amy is Single mother with three dependent children, one age 11 and the other age 8...
Amy is Single mother with three dependent children, one age 11 and the other age 8 and 14. Her adjusted gross income for 2017 is $25,000 and she incurs qualified childcare expenses of $15,000, ( $5,000 for each child. ) A. What is the amount of Amy's qualified childcare expenses after any limitaiton? $________ B. Calculate the amount of Amy's childcare credit for 2017. $________
For 2019: Chin Lee (age 42) is single with three minor children (all under age 16),...
For 2019: Chin Lee (age 42) is single with three minor children (all under age 16), who live with him. Chin has a salary of $80,001, a short-term capital loss of ($2,000), a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. Calculate/Answer the following: a. Chin's optimum filing status b. Chin's adjusted gross income c. Chin's taxable income d. Chin's tax liability before any credits Show all calculations and label each answer.
Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000...
Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. TABLE 6.1 CHILD AND DEPENDENT CARE CREDIT PERCENTAGES Adjusted Gross Income Applicable Percentage Over But Not Over $0 – $15,000 35% 15,000 – 17,000 34% 17,000 – 19,000 33% 19,000 – 21,000 32% 21,000 – 23,000 31% 23,000 – 25,000 30% 25,000 – 27,000 29% 27,000 – 29,000 28% 29,000 – 31,000 27% 31,000 – 33,000...
Find the Federal Poverty level for a family of 4 with 2 children under the age...
Find the Federal Poverty level for a family of 4 with 2 children under the age of 18. Offer comments on why that statistic is shocking or why it is incorrect.
According to a recent study, 40% of children under the age of 2 have used a...
According to a recent study, 40% of children under the age of 2 have used a mobile device as a form of entertainment (i.e play video games, watch movies, listen to, music, etc.) If a random sample of 200 children under the age of 2 is selected determine the probability that: a) at least 45 % have used a mobile device as a form of entertainment. b) between 37% and 48% have used a mobile device as a form of...
1319 school children were evaluated at age 12 and at age 14 for the prevalence of...
1319 school children were evaluated at age 12 and at age 14 for the prevalence of severe colds. There were 356 children who had severe colds at age 12, and 468 who had severe colds at age 14. There were 212 children who had severe colds at both ages. Do school children tend to have more severe colds when they are younger? Build a two-way table displaying the information above. Run McNemar’s test using the binomial distribution to see if...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT