Problem 3: Calculate Tax Liability Andrew Golden works as a personal secretary for Jackson Worldwide. During 2022 he reports taxable income of $200,000 which can be broken down into the following sources: ● ● $140,000 of wage income $50,000 of self-employment income from his side-job as a boomer consultant. $10,000 in long-term capital gains. Andrew is unmarried for the entire year and maintained a household for his older nephew Godfrey who worked as a Tik-Tok influencer and qualifies as Andrew's dependent. Required: What is Andrew's total income tax liability for 2022?
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- Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: ● At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 • She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. • She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. ● Required: How much of the above transactions will be excluded from Annie's income for 2022?2. Taxes paid for a given income level Suppose that Hubert is preparing to file his taxes. He is single and currently lives in Chicago. Hubert earned $205,000 in taxable income in 2022. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 Hubert calculates that he owes 12.0 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Hubert calculates that his marginal tax rate is in income taxes for 2022. Hubert then calculates that his average tax rate is when his annual taxable income is $205,000. , based on the annual income level and the amount of taxes he owes for 2022. After figuring out what he owes in taxes in 2022, Hubert decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $4,000 of…2. Taxes paid for a given income level Suppose that Maria is preparing to file her taxes. She is single and currently lives in Miami. Maria earned $110,000 in taxable income in 2022. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2022. On Annual Taxable Income... Up to $10,275 From $10,275 to $41,775 From $41,775 to $89,075 From $89,075 to $170,050 From $170,050 to $215,950 From $215,950 to $539,900 Over $539,900 The Tax Rate Is... (Percent) 10.0 Maria calculates that she owes 12.0 22.0 24.0 32.0 35.0 37.0 Based on the IRS table, Maria calculates that her marginal tax rate is in income taxes for 2022. Maria then calculates that her average tax rate is when her annual taxable income is $110,000. based on the annual income level and the amount of taxes she owes for 202 After figuring out what she owes in taxes in 2022, Maria decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of…
- Question Description Compute the tax payable of Mr. Zubair who during the year ended 30th June 2018 enjoyed income from the following sources: (filer) Dividend from a private limited company 20% Rs. 9000 Zakat paid Rs. 7000 Profit on special deposit scheme10% Rs. 35000 Income from property Rs. 450,000 Gift from father Rs. 20000 Income from business Rs. 570,000 Agricultural income Rs. 22000 He has claimed the following amounts for rebate: a. Personal legal expenditure Rs. 25000 b. Purchased shares of public co. listed in PSX Rs. 50,000 c. Tuition fee paid for his son Rs. 55,000 d. Donation to Sindh University Rs. 50,000 Calculate Taxable income & Tax Payable for the year 2018.For 2018, Roberta is a self-employed truck driver with earnings of $45,000 from her business. During the year, Roberta received $2,500 in interest income and dividends of $500. She also sold investment property and recognized a $1,500 gain. What is the amount of Roberta’s self-employment tax (Social Security and Medicare taxes) liability for 2018? a. $2,790 b. $3,443 c. $6,358 d. $6,885 e. $7,344Katrina has wages of $161,000 in 2023. She also operates a small business that generated net profits of $10,000. What is Katrina's total self-employment tax? a. So b. $267.82 c. $290.00 d. $ 1,530.00
- 2. Taxes paid for a given income level Deborah is getting ready to do her taxes. She is single and lives in Miami. Deborah earned $250,000 in taxable income in 2015. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015. On Annual Taxable Income... Up to $9,225 From $9,225 to $37,450 From $37,450 to $90,750 From $90,750 to $189,300 From $189,300 to $411,500 From $411,500 to $413,200 Over $413,200 The Tax Rate Is... (Percent) 10.0 15.0 Deborah calculates that she owes 25.0 28.0 33.0 35.0 39.6 Based on the IRS table, Deborah calculates that her marginal tax rate is 33% when her annual taxable income is $250,000. Deborah then calculates that her average tax rate is in income taxes for 2015. , based on the annual income level and the amount of taxes she owes for 2015.4. profile-image Susan generated $55,000 of net earnings from the conduct of a tax preparation business that she operated during the tax-filing season. She also received wages of $96,800 from her full-time job. Compute Jain's self-employment tax due for 2022.The Tax Formula for Individuals, A Brief Overview of Capital Gains and Losses (LO 1.3, 1.9) In 2020, Manon earns wages of $54,000. She also has dividend income of $2,800. Manon is single and has no dependents. During the year, Manon sold silver coins held as an investment for a $7,000 loss. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 Calculate the following amounts for Manon: a. Adjusted gross income $fill in the blank b. Standard deduction $fill in the blank c. Taxable income $fill in the blank
- b. During 2022, Henry (a single taxpayer) has a salary of $85,000 and interest income of $4,000. Henry has no other income or deductions. Calculate the maximum contribution Henry is allowed for an educational savings account. X Feedback Check My WorkSelf-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "0". Details a. The payments are made in 2021 as part of a divorce decree executed in 2018. The divorce decree is modified in 2021 to explicitly apply the provisions of the TCJA. b. The payments are made in 2021 as part of a divorce decree executed in 2016. c. The payments are made in 2021 as part of a divorce decree executed in 2021. Deductible by payor Includable by recipient 00 00Problem 4: Calculate net tax due Saji and Henry Lozano are married for all of 2022 and have an AGI of $130,000, taxable income of $120,000 and calculated income tax liability of $50,000. Their income tax liability in 2021 was $40,000, and they made the minimum amount of withholding and estimated income tax payments to ensure that they will not be subject to any estimated tax penalties. In addition, they had $5,700 withheld from their wages for their portion of Social Security and Medicare taxes and provided you with the following information: • They maintained a home for Saji's dependent 85 year old father. Henry spent $2,000 on qualified tuition pursuing his master's degree. Required: What is the Lozano's net tax due(refunded) for 2022?