Last year, Mrs. Washington had a taxable income of $61,000 and paid about 20% in taxes. Thisyearcontributed $4,200 to a traditional IRA. About how much could her tax liability be reduced?sheType your answer...

Answered: Image /qna-images/answer/99321a76-59eb-4f56-88fe-fceed0873dc2.jpg

Answered: Last year, Mrs. Washington had a…

Last year, Mrs. Washington had a taxable income of $61,000 and paid about 20% in taxes. This contributed $4,200 to a traditional IRA. About how much could her tax liability be reduced? year she

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 30P

See similar textbooks

Related questions

Q: his year, Janelle received $200,000 in life insurance proceeds. The proceeds related to a life…

A: Taxable income is the portion of an individual's or a company's income that is used to determine how…

Q: Jerry bought his home 15 years ago for $60,000. Three years ago, Jerry married Debbie and she moved…

A: If any married taxpayer files joint return may exclude income up to $500,000 gains from selling…

Q: A man earned wages of $54,400, received $1200 in interest from a savings account, and contributed…

A: Itemized deduction includes: 1. Interest expense: Home Mortgage interest on acquisition in debtness.…

Q: This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his…

A: Tax: It is the compulsory payment that arises on the corporation, individual, and the organisation…

Q: rue or false?

A: Income is a residual amount left after netting of net expenses incurred to earn that income. The net…

Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…

A: Given that: Contribution to IRA = $12900 Current value of ROTH IRA = $21700 Amount withdrawn for…

Q: Nicole’s employer, Poe Corporation, provides her with an automobile allowance of $26,000 every other…

A: Fringe benefits include: Health insurance Life insurance Tuition assistance Cafeteria subsidies,…

Q: Esposito's yearly taxable income totals $78,000, and he pays $20,050 in federal income tax every…

A: Espsito's Yerly taxable income is $78,000 Tax paid is $20,050 To Find: Net Federal income tax…

Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…

Q: This year Randy paid $28,000 of interest on his residence. (Randy borrowed $450,000 to buy his…

A: An itemized deduction seems to be an expenditure that could be deducted from your adjusted gross…

Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…

A: After tax amounts are the net earnings which are left for the tax payer after paying all expenses,…

Q: During the year (not a leap year), Anna rented her vacation home for 30 days, used it personally for…

A: Treatment to be made in case of Rented Property: Income From House Tax: If the resident of an…

Q: 1.Jake pays $8,500 in deductible property taxes. His marginal tax rate is 31%, his effective tax…

A: Jake pays $ 8500 in the deductible property taxes. We are supposed to calculate the savings in tax…

Q: Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In…

A: Legal Services = $ 27000 Current year = 32% Next year = 35%

Q: Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he…

A: Answer: Unfortunately the IRS prohibits the deductions of rental losses against any other sources of…

Q: Jose made $20,000 in taxable income last year. Suppose the income tax rate is 10% for the first…

A: In the given case, only hypothetical income tax slab rate is given (10% and 15%) and there are also…

Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…

A: As per the given question, Sherry receives $ 14,000 as a withdrawal of distribution from the Roth…

Q: Amira and Tay each started with $200,000. They retired, and both took out $6,500 of their money at…

Q: For the current tax year, Morgan had $25,000 of ordinary income. In addition, he had an $1,900…

A: Capital loss: The loss that occurs when selling long-term assets and short-term assets. This loss is…

Q: Kim earned $30,000 from Pfizer before she was laid off. She then collected $7,000 of unemployment…

Q: Anne Smith works as a dentist. In addition to what she does for a living, she runs a restaurant. She…

A: Taxable Income: It specifies the basis on which the income system sets the tax. In other words, the…

Q: Every year, John makes a donation to the United Way. She gave $3,250 in 2020. Calculate her…

A: Donations: Donations are the amounts made to charitable institutions like public trusts,…

Q: Michael earns $10,000, and his tax liability for the current year is $8,000, double what it was the…

A: The tax liability refers to the part of taxable income which becomes liability of taxpayer towards…

Q: During the year, Brenda (70), a single taxpayer, received $18,000 in social security benefits. Her…

A: Introduction:- Calculation of how much of Brenda's social security benefits are taxable as follows:-…

Q: Kim's net worth at the beginning of the year is $250,000. Across the year she earns $60,000 before…

A: The amount of assets and liabilities would be resulted the net worth. It is the assets over the…

Q: My daughter earns a salary of $40,800 per year, payable monthly. She is married and claims four…

A: Calculate total withholding allowance.

Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…

A: Rental payment: A rental payment refers to the fixed payment of an agreed amount that is mentioned…

Q: During the year, Brenda (70), a single taxpayer, received $18,000 in social security benefits. Her…

A: Combined Income=Social security benefits×12+Wages+Pension

Q: This year Luke has calculated his gross tax liability at $2,140. Luke is entitled to a $2,910…

A: Tax or Taxes: Tax isTax or Taxes:Tax is an amount paid by the persons (individuals and business…

Q: Peter's gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000 each into…

A: a. Gross income = Peter’s gross income + Wandy gross income = $80000 + $100000 = $180000 b.…

Q: 1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages,…

A: The adjusted gross income is the net earning of the taxpayer after deductions and exemptions. The…

Q: Tin rents her beach house for 60 days and uses it for personal use for 30 days during the year. The…

A: Total expenses deductible = Mortgage Interest + Rental estate taxes

Q: Selerino and Maria are married and file their taxes jointly. Selerino earned $82,000 in wages last…

A: Every individual earning any form of income is liable to pay tax to the Government on the income…

Q: how is this withdrawal taxed? A. $9217 of the withdrawal is considered to be a tax-free return of…

A: The question is multiple choice question.The is related to withdrawal of annuties. Required How is…

Q: For tax purposes, "gross income" is all the money a person receives in a given year from any source.…

A: In the given Question, the tax rates shown in the table are for For Married Individuals Filing Joint…

Q: n each of the following cases, discuss how the taxpayers might respond to a tax rate increase in a…

A: Income Tax: Income tax is a direct tax which is paid by the taxpayer depending on his level of…

Q: For tax purposes, "gross income" is all the money a person receives in a given year from any source.…

A: Federal tax is being paid to the US national government and not paid to the state government of the…

Q: Kendra is a self-employed taxpayer working exclusively from her home office. Before the home office…

A: The correct answer is option (d)Only $6,000 home office expenses may be deducted, resulting in net…

Q: For the following taxpayers, indicate whether the taxpayer should file a tax return and why. a.…

A: based on the US tax rates and rules the individual and the body corporate need to file their tax…

Q: The year before last, Victor earned $85,000 from his retail management position, and Maria began…

A: Tax liability is the amount owed to the government by the income earner and this is computed by…

Q: Allie received a $50,000 distribution from her 401(k) account this year that she established while…

A: Taxes- Taxes are compulsory contributions levied on individuals or corporations by a government body…

Q: A man earned wages of $38,000, received $1900 in interest from a savings aCcount, and contributed…

A: The Internal Revenue Service, known as the IRS, governs the income tax collections, refunds, and…

Q: Mang Carlo is a balut vendor. For the taxable year year, he earned 180,000 from selling balut. Mang…

A: Total income is referred to the amount which is computed after adding the income generated by the…

Q: John is filing taxes individually, his salary is $102,000, he also received $5,000 on interest from…

A: Hi, since you have asked a question with multiple subparts, we are solving the 1st 3 subparts for…

Q: Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of…

A: Sherry has made a withdrawal from her Roth IRA within five years of opening it, she has received a…

Q: Briana owns a second home that he rents to others. During the year, she used the second home for 50…

A: Here Brady used property for 50days

Q: I am stuck on a few questions this one is: This year Lloyd, a single taxpayer, estimates that his…

A: Underpayment Penalty:The United States income tax system is a pay-as-you-go tax system, which means…

Q: Wanda received a 401(k) distribution of $100,000 this year. If Wanda's marginal tax rate is 24%,…

A: Applicable Law : Participants in a traditional or both 401 (k) plan are not allowed to withdraw…

Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.

Question

Last year, Mrs. Washington had a taxable income of $61,000 and paid about 20% in taxes. This
year
contributed $4,200 to a traditional IRA. About how much could her tax liability be reduced?
she
Type your answer...

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.
Calculate the two taxes, capital gains and income tax based in if Your Mother has been working for 15 years as a soldier and her wage income for a year is $92,895. She sold some mutual funds this year and had a capital gain of $50,000. Her total taxable income is $142,895.
Use the following information for the next three questions:Maricel started a laundry business last year. At the end of 2018, he earned a taxable income of P350,000 in total. He did not opt the 8% income tax rate.6. What is the tax rate based on the graduated tax schedule?a. 20% of the excess over P250,000b. P30,000 + 25% of the excess over P400,000c. P130,000 + 30% of the excess over P800,000d. P490,000 + 32% of the excess over P2,000,0007. What is the tax due?a. 0b. 20,000c. 55,000d. 70,0008. What is the percentage tax?a. 0b. 600c. 10,500d. 30,500
(d) What is Kevone's taxable income? (e) Kevone paid $16,300 in taxes last year. Will Kevone get a refund? If so, how much? If not, how much does he owe?
Ruth has asked for help in determining whether she should receive her $32,500 bonus check in the current year or next year. In the current year, her marginal tax rate is 24% and she anticipates she will be in the 32% marginal tax bracket next year. What advice can you give Ruth? Net revenue from bonus $ Current year Ruth should choose to receive her bonus in the ✓year. Next year
For the following taxpayers, indicate whether the taxpayer should file a tax return and why. c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year. d. Startup Corporation had a $50,000 loss this year. e. The Walker Family Trust earned $500 of gross income this year.
2. Use the the marginal tax information in the table below to calculate the annual after tax income Greg should expect in his retirement. Greg expects $11201 annually from CPP, $6467 annually from OAS, and $99,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000.
Mia contributed $100,000 to a Roth IRA over the past 20 years. She retired at age 60 and would like to withdraw all the funds. She would be in the 24% federal marginal tax bracket. How much will she pay in income taxes on the funds? O $0. O $34,000. O $10,000. O $24,000.
I want answer with explanation... I'll upvote you... Only typed answer I want... The Johnsons have accumulated a nest egg of $40,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $2200/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $2500. If the Johnsons decide to secure a 15-year mortgage, what is the price range of houses that they should consider when the local mortgage rate for this type of loan is 2%/year compounded monthly? (Round your answers to the nearest cent.) least expensive $ most expensive $
Simon and Marie received a statement reporting that they paid $6,000 in mortgage interest during the past year. If they are in a 22 percent tax bracket, and they itemize their deductions, this deduction would reduce their taxable income by Select one: a. $1,000 b. $1,500 c. $3,000 O d. $6,000 e. $7,500 Clear my choice
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…
Kara's annuity earned $1,000 of interest this year. When she files her income tax return for this year, she will have to report how much of that $1,000 as taxable income?