Question

In: Accounting

Zach and Melissa Nieland file a joint tax return, and they itemize deductions. Assume their marginal...

Zach and Melissa Nieland file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielands incur $3,000 in miscellaneous itemized deductions, excluding investment expenses. They also incur $2,320 in noninterest investment expenses during the year. What tax savings do they receive from the investment expenses under the following assumptions: (Round your answer to the nearest whole dollar amount.)

a. Their AGI is $112,000.

       Tax savings from investment expense: ____________

b. Their AGI is $154,250.

      Tax savings from investment expense: ____________

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Martin and Joanne file a joint tax return. Their combined income and deductions are $150,000 salary...
Martin and Joanne file a joint tax return. Their combined income and deductions are $150,000 salary income, $4,500 municipal bonds interest income, $5,000 long-term capital gains, and $20,000 allowable itemized deductions. Calculate their taxable income and gross income tax liability for 2018.
Sandy is married, files a joint return, and expects to be in the 24% marginal tax...
Sandy is married, files a joint return, and expects to be in the 24% marginal tax bracket for the foreseeable future. All of his income is from salary and all of it is used to maintain the household. He has a paid up life insurance policy with a cash surrender value of $100,000. He paid $60,000 of premiums on the policy. His gain from cashing in the life insurance policy would be ordinary income. If he retains the policy, the...
Refundable Child Tax Credit. Pat and Diedra Dobson file a joint tax return for 2019. The...
Refundable Child Tax Credit. Pat and Diedra Dobson file a joint tax return for 2019. The Dobsons’ AGI is $30,900, of which $27,300 is taxable wages. The Dobsons’ take the standard deduction and claim as dependents to their two teenage children, ages 13 and 15. Other than the child tax credit, the Dobsons’ do not claim ant nonrefundable personal tax credits. Compute the Dobsons’ nonrefundable and refundable child tax credit.
Scott and Laura are married and will file a joint tax return. Laura has a sole...
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a “specified services” business) that generates qualified business income of $300,000. The proprietorship pays W–2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $386,600 (this is also their modified taxable income). Determine Scott and Laura’s QBI deduction, taxable income, and tax liability...
James and Mary are married and file a joint tax return. Together, their taxable income is...
James and Mary are married and file a joint tax return. Together, their taxable income is $80,000. How much will they pay in taxes? (Round answers to 0 decimal place, e.g. 5275.)
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,850. Meg works part-time at the same university. She earns $34,150 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,300. Meg works part time at the same university. She earns $33,300 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,700. Meg works part-time at the same university. She earns $34,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). a. a. What is the Comers’ tax liability...
1. George & Martha are married and file a joint income tax return. In 2017 the...
1. George & Martha are married and file a joint income tax return. In 2017 the couple had $ 250,000 of total income and $ 200,000 in taxable income. a. Calculate George & Martha’s Washington’s 2017 federal income tax liability (USE THE 2017 tax rate schedule in appendix D in your book). b. What is George & Martha’s marginal federal tax rate for 2017? c. What is the George & Martha’s average tax rate for 2017? d. What is the...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,000. Meg works part time at the same university. She earns $35,500 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT