Question

Misti purchased a residence this year. Misti, age 32, is a single parent and lives with...

Misti purchased a residence this year. Misti, age 32, is a single parent and lives with her 1-year-old daughter. This year, Misti received a salary of $160,000 and made the following payments:

State Sales Tax

$200

Home mortgage interest ($500,000 acquisition debt)

$15,000

Real estate taxes

1,525

State income taxes paid

1,340

Income tax preparation fee

2,250

Charitable contributions (cash to their church)

120

Misti files as a head of household. Calculate her taxable income this year.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation for taxable income

Gross income [ Salaried income] $160,000
Less: Above the line deduction Nil
Adjusted gross income $160,000
Less: Itemized deduction or standard deduction which ever is higher
(A) Itemized deduction
Real estate tax and either state sales tax or state income taxes which ever is higher [ $ 1,525 + $ 1,340( state income tax )] $ 2,865
Home mortgage interest $15,000
Income tax preparation fees [ not deductible from 2018 through 2025] nil
Charitable contribution $ 120
Total itemized deduction $17,985
(B) Standard deduction $18,350
[ So, standard deduction will be consider for deduction ] $ 18,350
Taxable income of Misti $141,650
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
Misti purchased a residence this year. Misti, age 32, is a single parent and lives with...
Misti purchased a residence this year. Misti, age 32, is a single parent and lives with her 1-year-old daughter. This year, Misti received a salary of $160,000 and made the following payments: State Sales Tax $200 Home mortgage interest ($500,000 acquisition debt) $15,000 Real estate taxes 1,525 State income taxes paid 1,340 Income tax preparation fee 2,250 Charitable contributions (cash to their church) 120 Misti files as a head of household. Calculate her taxable income this year.
Ryan is not married and supports her 12 year old child who lives with her. Ryan...
Ryan is not married and supports her 12 year old child who lives with her. Ryan works as an employee with gross salaries and wages of $122,000. Ryan only other income was interest of $7,300, qualifying dividends of $3,150, and other information follows: Contribution to solo(k) retirement plan, withheld from the salary             $ 4,500 Loss on sale of Alphatech stock held 2 years                                                   -3,700 Mortgage interest on primary residence                                                           4,950 State and local property tax on residence                                                          3,350 Property tax...
Christina is single with a 12 year old daughter who lives with her. She files her...
Christina is single with a 12 year old daughter who lives with her. She files her tax return as Head of Household. Her 2019 income from wages is $425,350. She has “net long-term capital gains” of $100,000. Total 2019 gross income is $525,350. She is under 65 years of age and does not itemize her deductions. What is her total federal income tax (remember, the 2019 “qualified dividends – capital gains” worksheet)?
Matthew is not married and supports a 12 year old child who lives with Matthew and...
Matthew is not married and supports a 12 year old child who lives with Matthew and has gross income of $2,650 (the child's gross income). Matthew works as a self-employed planner and earned commissions and fees of $134,000 during 2019. Matthew’s other information follows: Matthew’s business expenses                                                           $14,900 Contribution to solo(k) retirement plan                                                4,500 Loss on sale of Alphatech stock held 2 years                                     -3,700 Payment for self-employed persons medical insrutance                      8,000 Mortgage interest on primary residence                                     12,950 State...
Your client, Sadie Merriweather, is struggling to understand the changes in the tax law. She would...
Your client, Sadie Merriweather, is struggling to understand the changes in the tax law. She would like you to explain the changes to itemized deductions and personal exemptions, her personal information is as follows: Charitable Contributions $1,000 Mortgage Interest $7,300 Property Taxes $3,500 State Income Tax Paid in 2019 $15,000 Safety Deposit Rental Fee $500 Tax Preparation Fees $750 Medical Expenses $3,000 Sadie has two children ages 10 & 14 and files as Head of Household. Her only source of...
Paul is single, age 33 and earned a salary of $70,000. In 2019, Paul received a...
Paul is single, age 33 and earned a salary of $70,000. In 2019, Paul received a state tax refund of $2,000 based upon his 2018 state tax return. Paul itemized deductions in 2018 on his federal tax return which included a deduction only State income taxes. Paul's potential itemized deductions for the current year are as follows: medical expenses $4,000 Charitable contributions $500 Mortgage interest $1,000 Real estate taxes $11,000 Calculate Paul's taxable income for 2019 and Paul's income tax...
Lyn, a single, self-employed investment counselor who also owns a rental property. This year, she collected...
Lyn, a single, self-employed investment counselor who also owns a rental property. This year, she collected $85,000 in fees and paid the following business and personal expenses Expenses below: Health insurance premiums (not through an exchange) $ 4,200 Life insurance premiums (whole life) $ 1,900 Books on investing $ 200 Repairs of the rental property $ 450 Advertising for investment clients $ 1,770 State income taxes $ 4,300 Self-employment tax (hint: half is employer share) $ 11,732 Marketing Lunch and...
This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives...
This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta,...
Lin Lee, a single, self-employed investment counselor who also owns a rental property. This year, she...
Lin Lee, a single, self-employed investment counselor who also owns a rental property. This year, she collected $85,000 in fees and paid the following business and personal expenses Expenses below: Health insurance premiums (not through an exchange) $ 4,200 Life insurance premiums (whole life) $ 1,900 Books on investing $ 200 Repairs of the rental property $ 450 Advertising for investment clients $ 1,770 State income taxes $ 4,300 Self-employment tax (hint: half is employer share) $ 11,732 Marketing Lunch...
Sylvester files as a single taxpayer during 2017 and claims one personal exemption. He itemizes deductions...
Sylvester files as a single taxpayer during 2017 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $16,600, real estate taxes of $3,300, state income taxes of $6,350, and interest on a home-equity loan of $4,800. Sylvester’s regular taxable income is $163,000. a. What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT