Question

1) The Inouyes filed jointly in 2018. Their AGI is $78,000. They reported $2,000 of qualified...

1) The Inouyes filed jointly in 2018. Their AGI is $78,000. They reported $2,000 of qualified business income and $22,000 of itemized deductions. They have two children, one of whom qualifies as their dependent as a qualifying child. The 2018 standard deduction amount for MFJ taxpayers is $24,000. What is the total amount of from AGI deductions they are allowed to claim on their 2018 tax return? Learning Objective: 04-01 Describe the formula for calculating an individual taxpayer's taxes payable or refund.

2) Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2018, Ed and Jane realized the following items of income and expense:

Item

Amount

Ed's Salary

$

35,000

Jane's Salary

70,000

Municipal bond interest income

400

Qualified business income

1,000

Alimony paid (for AGI deduction)

(7,000

)

Real property tax (from AGI deduction)

(10,000

)

Charitable contributions (from AGI)

(15,000

)

They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2018 standard deduction amount for MFJ taxpayers is $24,000.

What is the couple's taxable income?

Learning Objective: 04-01 Describe the formula for calculating an individual taxpayer's taxes payable or refund.; 04-02 Explain the requirements for determining who qualifies as a taxpayer's dependent.; 04-03 Determine a taxpayer's filing status.

SHOW HOW YOU GOT ANSWERS!!!!

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Total amount from AGI deduction shall be greater of itemized deduction or standard deduction. In the given case, Itemized deductions are $22000 and standard deduction is $24000. Moreover in the year 2018, there is no dependency and personal exemption from the AGI.

Therefore, the total amount of AGI deductions= $24000

2.The couple's taxable income is as follows:-

Particulars Amount

Ed's Salary

35,000

Jane's Salary

70,000

Municipal bond interest income

0

Qualified business income

1,000
GROSS INCOME 1,06,000
Less:- Alimony Paid (7000)
ADJUSTED GROSS INCOME 99,000
Standard deduction- 24000
Itemized deduction- 25000
LESS:- Greater of standard or itemized deduction (25000)
TAXABLE INCOME 74,000
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
TRUE OR FALSE 1. In 2018, unreimbursed employment related expenses are classified as deductions for AGI....
TRUE OR FALSE 1. In 2018, unreimbursed employment related expenses are classified as deductions for AGI. 2. Section 212 expenses that are related to rent and royalty income are deductions for AGI. 3. Alice incurs qualified moving expenses of $12,000 in 2018. If she is not reimbursed by her employer, the deduction is classified as a deduction for AGI. 4. The Code does not specifically define what constitutes a trade or business. 5. An expense need not be recurring in...
1/ Linda, who files as a single taxpayer, had AGI of $280,000 for 2018. She incurred...
1/ Linda, who files as a single taxpayer, had AGI of $280,000 for 2018. She incurred the following expenses and losses during the year: Medical expenses (before the 7.5%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000 Unreimbursed employee business...
ANSWER THE FOLLOWING FOR EACH QUESTIONS: A) Determine the AGI this year for the taxpayer(s). B)...
ANSWER THE FOLLOWING FOR EACH QUESTIONS: A) Determine the AGI this year for the taxpayer(s). B) Determine the amount of itemized deductions the taxpayer(s) has (have) available this year. C) Using the 2018 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in of your book, state whether the taxpayer(s) itemize or take the standard deduction. I am not asking for you to state the amount of either the standard deduction or the itemized deductions...
Required information [The following information applies to the questions displayed below.] Demarco and Janine Jackson have...
Required information [The following information applies to the questions displayed below.] Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary income of $125,000 and qualified business income of $12,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $212,500 and they sold it for $262,500. The gain...
1. Which of the following was not a change from the Tax Cuts and Jobs Act...
1. Which of the following was not a change from the Tax Cuts and Jobs Act of 2017? There is a new deduction for 20% of qualified business income. The corporate income tax rate was reduced to 21% flat. Charitable contributions are no longer deductible. The itemized deduction for state and local taxes is capped at $10,000. 2. Adjusted gross income (AGI) is important because It is used as a base to determine the amount of certain tax deductions and...
1. Chen, a single taxpayer, had the following income and deductions during 2018: Salary                           &nbsp
1. Chen, a single taxpayer, had the following income and deductions during 2018: Salary                                                 $55,000 Interest on bank account                           750 Tax-exempt interest                                  500 Deduction for AGI                                5,500 Itemized deductions                           15,000 Taxes withheld                                      5,500 Calculate Chen's tax liability due or refund. 2. Artimisa's employer pays $8,000 in tuition this year for Artimisa to attend a graduate business program. How much of the employer-provided tuition is taxable to Artimisa? A) $0 B) $2,750 C) $5,250 D) $8,000
Demarco and Janine Jackson have been married for 20 years and have four children who qualify...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of...
David Miller (age 34) and his wife, Emily Miller (age 33), reside at 293 E. Main...
David Miller (age 34) and his wife, Emily Miller (age 33), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children whom they fully support: Catherine (age 13) and Michael (age 11). During the year, Emily worked full-time as a customer service representative at a local bank and earned $37,600. Her employer withheld the following from her wages: Federal income tax $2,250.00 State income tax 1,124.60 Social security tax 2,331.20 Medicare tax 545.20 ROTH IRA contribution...
For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of $325,200....
For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of $325,200. Their itemized deductions are as follows. Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $51,400 Home mortgage interest (loan qualifies as acquisition indebtedness) 20,560 Credit card interest 1,028 Property taxes on home 15,420 Charitable contributions 28,270 State income tax 17,990 Tax return preparation fees 1,542 Round...
For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of $343,400....
For calendar year 2018, Stuart and Pamela Gibson file a joint return reflecting AGI of $343,400. Their itemized deductions are as follows. Note: All expenses are before any applicable limitations, unless otherwise noted. Casualty loss in a Federally declared disaster area after $100 floor (not covered by insurance) $49,000 Home mortgage interest (loan qualifies as acquisition indebtedness) 19,600 Credit card interest 980 Property taxes on home 14,700 Charitable contributions 26,950 State income tax 17,150 Tax return preparation fees 1,470 Round...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT