Question

In: Finance

Margo has $2,200 withheld from her wages for state income taxes during 2019. In March of...

Margo has $2,200 withheld from her wages for state income taxes during 2019. In March of 2019, she paid $400 in additional taxes for her 2018 state tax return. Her state income tax liability for 2019 is $2,700 and she pays the additional $500 when she files her 2019 state tax return in April of 2020. What amount should Margo deduct as an itemized deduction for state income taxes on her 2019 federal income tax return, assuming she deducts state and local income taxes?

Solutions

Expert Solution

As per income tax(used cash basis method), as $400 was paid in March 2019, that's why $400 was included with 2019 Withholdings of $2,500.

Itemized deduction = 2019 Withholdings + Tax paid in March 2019

= $2,500 + $400 = $2,900

Itemized Deduction = $2,900

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

During 20--, Matti Conner, president of Acme Inc. was paid a semimonthly salary of $6,100. Computer the amount of FICA taxes that should be withheld from her.
Rate   Wage BaseMaximum TaxEmployee and Employer OASDI: 6.20% $132,900   $8,239.80Employee* and Employer HI: 1.45%. No limit   No maximumDuring 20--, Matti Conner, president of Acme Inc. was paid a semimonthly salary of $6,100. Computer the amount of FICA taxes that should be withheld from her.                                     OASDI         HIA. 9th paycheckB. 22nd paycheckC. 24th paycheckD. If Maria's year to date earnings as of her 24th paycheck are $146,400 and her year-end bonus is $100,00, how much is the additional HI tax withheld?
Molly is single and earns $150,000 in wages as a lawyer. Her employer withheld $30,000. She...
Molly is single and earns $150,000 in wages as a lawyer. Her employer withheld $30,000. She is also an equal co-owner in a real estate management partnership with her friend Issa. The partnership earned $8,000 this year. The following also occurred this year: Molly purchased a stock last year for $28,000 and sold the stock this year for $22,000. During this year and before the sale of the stock, the stock paid Molly $200 in dividends. Molly’s bank paid her...
Which of the following would be used to compute the federal income taxes to be withheld...
Which of the following would be used to compute the federal income taxes to be withheld from an employee's earnings? a) FUTA tax rate b) withholding table c) FICA tax rate d) wage and tax statement
True or false 1.The required withholding of federal income taxes and FlCA taxes from employees' wages...
True or false 1.The required withholding of federal income taxes and FlCA taxes from employees' wages results in a direct reduction of operating expenses for the employer firm. 2.If an investment is made that pays 8% annual interest for a 5-year period with quarterly compounding, the number of periods is 60. 3.The chart of accounts is also known as the book of original entry. 4.R&D expense is treated as an operating expense and is not capitalized. 5.Preferred stockholders compose the...
Use the percentage method to compute the federal income taxes to withhold from the wages or...
Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee. If an amount is zero, enter "0". Round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. Employee No. Employee Name Marital Status No. of Withholding Allowances Gross Wage or Salary Amount to Be Withheld 1 Amoroso, A. M 5 $1,610 weekly $...
Use the percentage method to compute the federal income taxes to withhold from the wages or...
Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee. If an amount is zero, enter "0". If required, round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. Employee No. Employee Name Marital Status No. of Withholding Allowances Gross Wage or Salary Amount to Be Withheld 1 Amoroso, A. M 4 $1,610...
Use the percentage method to compute the federal income taxes to withhold from the wages or...
Use the percentage method to compute the federal income taxes to withhold from the wages or salaries of each employee. If an amount is zero, enter "0". If required, round your calculations and final answers to the nearest cent. Click here to access the Table of Allowance Values. Click here to access the Percentage Method Tables. Employee No. Employee Name Marital Status No. of Withholding Allowances Gross Wage or Salary Amount to Be Withheld 1 Skymer, A. M 4 $...
Donald Smith has Medical wages of $174,000.00 during 2018. His employer withheld $2,523.00. His wife Anne...
Donald Smith has Medical wages of $174,000.00 during 2018. His employer withheld $2,523.00. His wife Anne has $150,000.00 of Medicare wages for the same period with $2,175.00 withheld. Complete their Form 8959 for 2018.
1. If an employer does not pay the taxes withheld from employees to the government, is...
1. If an employer does not pay the taxes withheld from employees to the government, is the employee responsible? 2. Is a defined benefit or a defined contribution plan better for an employee? for an employer? 3. Why would a company consider issuing preferred stock? If it needs to raise capital, wouldn’t it be better just to borrow the money from a bank?
During the income year ended 30 June 2019/20 Nicholas, a resident, received salary and wages income...
During the income year ended 30 June 2019/20 Nicholas, a resident, received salary and wages income of $35,000, interest income of $3,000, an exempt compensation payment of $23,000, commission income of $4,000, a Living Away from Home Allowance (LAFHA) of $20,000, an Overtime Allowance $2,000 and a rental loss of $9,000. Assuming that he has PAYG (W) of $6,000. Ignore tax offsets. Required: what is Nicholas tax payable / refund (Please show all workings)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT