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- JC recently graduated from veterinary school and opened their own professional practice. This year, their net profit was $22,300. Assume JC does not qualify for the QBI deduction. Required: a. Compute JC's after-tax income from their practice assuming their self-employment tax is $3,151, and their marginal income tax rate is 22 percent. b. What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Complete this question by entering your answers in the tabs below. Required A Required B What percentage of the federal tax burden on JC's business income is represented by the self-employment tax? Note: Round your answer to the nearest whole percent. Self-employment tax %Jamie is an employee of LMN Corporation. He also sits on the board of directors of the organization. What method will be used to calculate the income tax on his director's fees? Lump-sum tax method Retroactive tax method Bonus tax method Regular pay period deduction methodRoss Martin arrived at the following tax information: Gross salary, $56,145 Interest earnings, $205` Dividend income, $65 Standard deduction, $12,000 Itemized deductions, $11,250 Adjustments to income, $1,200 What amount would Ross report as taxable income? If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $12,000. Donations to church and other charities, $6,050 Medical and dental expenses that exceed 10 percent of adjusted gross income, $2,400 State income tax, $4,690 What would be the average tax rate for a person who paid taxes of $4,584 on a taxable income of $41,670? Using Federal Tax Rate Schedules. Using the tax rate schedule in Exhibit 4-6, determine the amount of taxes for the following taxable income amounts: a. Married Filing Jointly: Taxable income $50,000. b. Married Filing Jointly: Taxable income $70,000. c. Married Filing Jointly: Taxable…
- Franklin Stewart arrived at the following tax information: Gross salary Interest earnings Eligible dividend income Basic personal amount Union dues Moving expense (50 km for employment) $ 47,780 225 100 12,069 3,890 1,150 What amount will Franklin report as taxable income? (Round your answer your response.) Taxable income $Franklin Stewart arrived at the following tax information: Gross salary Interest earnings Eligible dividend income Basic personal amount Union dues Moving expense (58 km for employment) $ 52,00€ 330 128 3,650 8,470 2,950 What amount will Franklin report as taxable income? (Round your answer to the nearest dollar amount. Omit the "S" sign in your response) Taxable incomeGiven the following tax structure: Taxpayer Mae Pedro Venita Salary $ 22,500 $ 45,000 $ 22,500 What tax would need to be assessed on Venita to make the tax horizontally equitable? Total Tax $ 1,980 $ 4,635 ???
- You understand that, given a choice between a $1,000 tax deduction and a $1,000 tax credit, you would opt for the credit every time. But how about as be-tween above-the-line (“for AGI”) and below-the-line (“from AGI”) deductions? As between a $1,000 “for AGI” deduction and a $1,000 itemized / “from AGI” deduction, which would you generally prefer to have, and why?You already understand that, given a choice between a $1,000 tax deduction and a $1,000 tax credit, you would opt for the credit every time. But how about as be-tween above-the-line (“for AGI”) and below-the-line (“from AGI”) deductions? As between a $1,000 “for AGI” deduction and a $1,000 itemized / “from AGI” deduction, which would you generally prefer to have, and why? Note: As CPAs we’re big on time-efficiency, so we’re also big on acronyms. It takes way too long to say (or type) “adjusted gross income.” We prefer “AGI” instead.Michelle Puxton has the following Bourcer of income and payroll deductions: Employment income $39,400 Interest income 7,000 Taxable capital gain Allowable capital lose 8,000 13,000 RRSP contribution 4,000 Alimony paid 6,600 Requirement: 1. What is Michelle's Net Income for Tax Purposes (in good form, copy the appropriate description of accounts in your anewer)? 2. Determine if there are losses that can be carried back and forward.
- Consider Taxpayers A and B who are in the same marginal tax bracket because of equal salaries. They each earn an additional $20,000—Taxpayer A by working overtime and Taxpayer B by selling stock resulting in a $20,000 capital gain. Taxpayer A pays tax at the ordinary income tax rate on his additional wages while Taxpayer B benefits from the lower capital gains tax rate on his extra income by selling an investment asset. Is this equitable? Should equivalent incomes be taxed equally?Consider the following hypothetical income tax brackets for a single taxpayer. Assume for simplicity there are no exemptions or deductions. Income $0-$10,000 $10,000-$40,000 $40,000-$100,000 Over $100,000 Is this tax regressive, progressive, or proportional? The income tax is progressive Suppose Susan's income is $30,000. How much will she pay in income taxes? Susan will pay $ in income taxes. (Enter your response as an integer) Tax Rate 10% 20 35 50For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A womanearned a salary of $27,000 and received $1000 in interest. Tax Rate Single 10% up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction $6350 Exemption (per person) $4050 Let FICA tax rates be 7.65%on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. Her income tax is $_____.
