Question

Ordinary Income: Determine the taxpayer’s tax liability for 2020 for each of the scenarios: a. Sally...

Ordinary Income: Determine the taxpayer’s tax liability for 2020 for each of the scenarios:

a. Sally is a single taxpayer and her taxable income is $625,000. All of her income is salary from her employer (i.e., it is all ordinary income).

b. Henrich is married to Sally and their taxable income is $625,000. All of their income is salary from Sally’s employer.

c. Assume that Henrich and Sally are in committed relationship, but not married at the end of 2020. They each have $312,500 of taxable income for the year, which is salary from their respective employers.

Show your work/Explain your answers.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
a.) Taxable Income $ 625,000
Filing Status Single
Tax liability $195,677 =156235+((625000-518400)*37%)
b.) Taxable Income $ 625,000
Filing Status Married filing Jointly
Tax liability $ 168,399 =167307.5+((625000-622050)*37%)
c.) Henrich
Taxable Income $ 312,500
Filing Status Single
Tax liability $ 84,170 =47367.5+((312500-207350)*35%)
Sally
Taxable Income $ 312,500
Filing Status Single
Tax liability $ 84,170 =47367.5+((312500-207350)*35%)
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Whitney received $75,000 of taxable income in 2020. All of the income was salary from her...
Whitney received $75,000 of taxable income in 2020. All of the income was salary from her employer. What is her income tax liability in each of the following alternative situations? Use Tax Rate Schedule for reference. (Do not round intermediate calculations.) a. She files under the single filing status. b. She files a joint tax return with her spouse. Together their taxable income is $75,000. c. She is married but files a separate tax return. Her taxable income is $75,000....
Question 1: In 2018, Lisa and Fred, a married couple, have taxable income of $300,000. If...
Question 1: In 2018, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000. What is the couple’s marriage penalty or benefit? Question 2: Henrich is a single taxpayer. In 2018, his taxable income is $450,000. What are his income tax and net investment income tax liability in each of the following alternative scenarios?...
Determine the tax liability for tax year 2019 in each of the following instances. In each...
Determine the tax liability for tax year 2019 in each of the following instances. In each case, assume the taxpayer can take only the standard deduction. Use the appropriate Tax Tables and Tax Rate Schedules. A taxpayer filing married filing separately with AGI of $68,996 and one dependent. A qualifying widow, age 66, with AGI of $49,240 and one dependent. A head of household with AGI of $14,392 and two dependents. A head of household with AGI of $59,226 and...
Determine the tax liability, marginal tax rate, and average tax rate in each of the following...
Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the appropriate 2019 Tax Tables and Tax Rate Schedules. Married taxpayers, who file a joint return, have taxable income of $38,862. Single taxpayer, has taxable income of $61,229. (For all requirements, use the tax tables to compute tax liability. Round "Average tax rate" to 2 decimal places.) Tax Liability Marginal Tax Rate Average Tax Rate A. _________ _____________ % ______________ % B....
Determine the tax liability for tax year 2019 in each of the following instances. In each...
Determine the tax liability for tax year 2019 in each of the following instances. In each case, assume the taxpayer can take only the standard deduction. Use the appropriate Tax Tables and Tax Rate Schedules. a. A single taxpayer, not head of household, with AGI of $23,493 and one dependent. b. A single taxpayer, not head of household, with AGI of $169,783 and no dependents. (Round your intermediate computations to 2 decimal places and final answer to the nearest dollar...
[The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2017,...
[The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2017, his taxable income is $425,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places. Leave no answer blank. Enter zero if applicable.) a. All of his income is salary from his employer. b. His $425,000 of taxable...
Tax Form/ Return Preparation Problem Sally W. Emanual, a teacher, had the following dividends and interest...
Tax Form/ Return Preparation Problem Sally W. Emanual, a teacher, had the following dividends and interest during the current year Acorn Corporation bonds interest                                    $ 700 City of Boston bonds interest                                               1,000 Camp Bank interest                                                                1,250 Jet Corporation dividend (qualified).                                   1300 North Mutual funds                 Capital gain distribution                    100                 Ordinary dividend (qualified)            150                 Nontaxable distribution                      200                   450 Blue Corporation foreign dividend                                             250 Additional information pertaining to Sally Emanual includes Salary                                                                                          70,000 Rent income                                                                                12,000 Expenses related to rent...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has a gross income of $90,100. His allowable deductions for adjusted gross income are $4,300, and his itemized deductions are $13,400. The standard deduction for 2017 is $6,350 and a personal exemption is $4,050. Round all amounts to the nearest dollar. Refer Tax Rate Schedules to answer the following questions. a. Hangtao's taxable income is $ and his tax liability is $________ for 2017. b....
1. Lacy is a single taxpayer. In 2017, her taxable income is $47,200. What is her...
1. Lacy is a single taxpayer. In 2017, her taxable income is $47,200. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. All of her income is salary from her employer. Tax liability: ____?____ 2. In 2017, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income marginal tax rate is 28 percent....
Whitney received $74,900 of taxable income in 2020. All of the income was salary from her...
Whitney received $74,900 of taxable income in 2020. All of the income was salary from her employer. What is her income tax liability in each of the following alternative situations? Use Tax Rate Schedule for reference. (Do not round intermediate calculations.) a. She files under the single filing status. 2020 Tax Rate Schedules income tax liability = Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $          0 $    9,875 10% of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT