Michael earns $10,000, and his tax liability for the current year is $8,000, double what it was the previous year. to avoid penalties, how much do his combined payments (withholdings and ccredits) haave to be?
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Michael earns $10,000, and his tax liability for the current year is $8,000, double what it was the previous year. to avoid penalties, how much do his combined payments (withholdings and ccredits) haave to be?
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- 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.Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income increases to $41,000, she would pay income taxes of $4,884. What is Melodie's marginal tax rate? 19.75 22.00 18.50 12.00 Some other amountOn June 30, 2019, Kelly sold property for 240,000 cash and a 960,000 note due on September 30, 2020. The note will also pay 6% interest, which is slightly higher than the Federal rate. Kellys cost of the property was 400,000. She is concerned that Congress may increase the tax rate that will apply when the note is collected. Kellys after-tax rate of return on investments is 6%. a. What can Kelly do to avoid the expected higher tax rate? b. Assuming that Kellys marginal combined Federal and state tax rate is 25% in 2019, how much would the tax rates need to increase to make the option identified in part (a) advisable?
- This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be $7,800. Required: a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. Complete this question by entering your answers in the tabs below. Required A Required B How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Increase in withholdingThis year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000.He estimates that his tax withholding from his employer will be $7,800. A. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? B. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent Dates 15- Apr 15- Jun 15- Sep 15- Jan TTL Actual witholding Req witholding Over (under) witheld Penalty per qtrThis year Lloyd, a single taxpayer, estimates that his tax liability will be $13,300. Last year, his total tax liability was $17,200. He estimates that his tax withholding from his employer will be $9,890. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Dates Actual withholding Required withholding Over (under withheld Penality per quater April 15th June 15th Sept. 15th Jan. 15th Total ------------------------------
- This year Lloyd, a single taxpayer, estimates that his tax liability will be $13,000. Last year, his total tax liability was $17,0 He estimates that his tax withholding from his employer will be $9,700. Required: a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume short-term rate is 5 percent. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Required A Required B Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Required Withholding Penalty Per Quarter Dates April 15th June 15th September 15th January 15th Total…(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?This year Lloyd, a single taxpayer, estimates that his tax liability will be $12,100. Last year, his total tax liability was $16,400. He estimates that his tax withholding from his employer will be $9,130. Required: How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent.