Scenario: Emma (age 30) and Brad (age 32) are considering getting married before the end of 2022. The following summarizes their income and deductions: Brad Emma A B C Salary 112,000 94,000 Itemized Deductions 21,700 11,800 Requirements: Compute 2022 (1.) taxable income; (2.) income tax liability; and (3.) the average tax rate under the following scenarios. Provide the details of your computations and use formulas when appropriate. They get married on December 1, 2022 and they choose to file married joint. They get married on January 1, 2023. What is the tax consequence to Emma and Brad, if they get married on December 1, 2022?

Scenario: Emma (age 30) and Brad (age 32) are considering getting married before the end of 2022. The following summarizes their income and deductions: Brad Emma A B C Salary 112,000 94,000 Itemized Deductions 21,700 11,800 Requirements: Compute 2022 (1.) taxable income; (2.) income tax liability; and (3.) the average tax rate under the following scenarios. Provide the details of your computations and use formulas when appropriate. They get married on December 1, 2022 and they choose to file married joint. They get married on January 1, 2023. What is the tax consequence to Emma and Brad, if they get married on December 1, 2022?

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter3: Preparing Your Taxes

Section: Chapter Questions

Problem 5FPE: Calculating taxable income for a married couple filing jointly. Freya and Sebastian Hunter are...

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Calculating taxable income for a married couple filing jointly. Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters joint 2018 tax return. So far, hes been able to determine the following concerning income and possible deductions: Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of 24,000 for married filing jointly applies.)
Calculating taxable income for a married couple filing jointly. Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters joint 2018 tax return. So far, hes been able to determine the following concerning income and possible deductions: Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of 24,000 for married filing jointly applies.)
Compute the 2019 AMT exemption for the following taxpayers. a. Bristol, who is single, reports AMTI of 650,000. b. Marley and Naila are married and file a joint tax return. Their AMTI is 1,528,000.
Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She has 800 in dividends income and 1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is 10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is 500, and her interest income is 125. d. Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions.
Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.