Steven (age 40) and Lori (age 39) Post are married. Lori works as a retail manager and Steven is a self-employed architect (he does not qualify for the QBI Deduction) and does not maintain a home office. Their 2020 tax and other information are as follows: Salary – Lori $90,000 Federal income tax withholding on salary $18,000 CT State Income Tax withholding on salary $ 6,000 CT Municipal bond interest $ 2,000 Savings account interest $ 1,500 Inheritance from Steven’s father’s estate $ 7,000 Dividends from RGR, Inc (all are non-qualified) $ 4,000 Interest paid on Loris’s personal car loan $ 2,000 Child support paid to Steven’s ex-wife $10,000 Alimony paid to Steven’s ex-wife. Divorced in 2010 $ 6,000 Qualified Out of Pocket Medical Expenses $ 5,000 Donations to Church $ 2,500 Real Estate Taxes on primary residence $ 5,000 Mortgage interest paid on primary residence (<$1M) $ 8,000 Steven’s business revenue $60,000 Steven’s business expenses $15,000 Required: Using the tax formula format, determine the following for the 2020 tax year (show all calculations): All Income $___________ Income Exclusions (if any) $ ___________ Gross income (including Steve’s SE profit) $ ___________ Deductions For AGI $ ___________ Adjusted gross income $ ___________ Itemized deduction or standard deduction amount $ ___________ Qualified Business Deduction $ ___________ Taxable income $ ___________ Income tax liability $ ___________ Self-employment tax liability $ ___________ Net tax due or refund (show calculation) $ ___________
Steven (age 40) and Lori (age 39) Post are married. Lori works as a retail manager and Steven is a self-employed architect (he does not qualify for the QBI Deduction) and does not maintain a home office. Their 2020 tax and other information are as follows:
Salary – Lori $90,000
Federal income tax withholding on salary $18,000
CT State Income Tax withholding on salary $ 6,000
CT Municipal bond interest $ 2,000
Savings account interest $ 1,500
Inheritance from Steven’s father’s estate $ 7,000
Dividends from RGR, Inc (all are non-qualified) $ 4,000
Interest paid on Loris’s personal car loan $ 2,000
Child support paid to Steven’s ex-wife $10,000
Alimony paid to Steven’s ex-wife. Divorced in 2010 $ 6,000
Qualified Out of Pocket Medical Expenses $ 5,000
Donations to Church $ 2,500
Real Estate Taxes on primary residence $ 5,000
Mortgage interest paid on primary residence (<$1M) $ 8,000
Steven’s business revenue $60,000
Steven’s business expenses $15,000
Required: Using the tax formula format, determine the following for the 2020 tax year (show all calculations):
- All Income $___________
- Income Exclusions (if any) $ ___________
- Gross income (including Steve’s SE profit) $ ___________
- Deductions For AGI $ ___________
- Adjusted gross income $ ___________
- Itemized deduction or standard deduction amount $ ___________
- Qualified Business Deduction $ ___________
- Taxable income $ ___________
- Income tax liability $ ___________
- Self-employment tax liability $ ___________
- Net tax due or refund (show calculation) $ ___________
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