Show using correct tax forms ProblemTim and Sarah Lawrence are married and file a joint return.Tim's Social Security number is 123-45-6789, and Sarah'sSocial Security number is 111-11-1111. They reside at 100 OliveLane, Covington, LA 70434. They have two dependent children,Sean and Debra, ages 12 and 16, respectively. Sean's SocialSecurity number is 123-45-6788, and Debra's Social Securitynumber is 123-45-6787. Tim is a self-employed businessperson(sole proprietor of an unincorporated business), and Sarah is acorporate executive. Tim has the following income and expensesfrom his business in 2019.$325,000201,000Gross incomeBusiness expensesRecords related to Sarah's employment provide the following information.SalaryUnreimbursed travel expenses (including $200 of meals)$145,0001,600Other pertinent information for the tax year includes the following.Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000),and sold on August 1, 2019Proceeds from sale of stock acquired on September 18, 2018(cost of $5,000), and sold on October 5, 2019Wages paid to full-time domestic worker for housekeeping andchild supervision$9,8003,80010,0007,00027,90031,85020,000Interest income receivedTotal itemized deductions (not including any potential deductions above)Federal income tax withheldEstimated payments of Federal income taxCompute the net tax payable or refund due for Tim and SarahLawrence for 2019.

Answered: Compute the net tax payable or refund…

Business

Accounting

Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

Show using correct tax forms

Problem
Tim and Sarah Lawrence are married and file a joint return.
Tim's Social Security number is 123-45-6789, and Sarah's
Social Security number is 111-11-1111. They reside at 100 Olive
Lane, Covington, LA 70434. They have two dependent children,
Sean and Debra, ages 12 and 16, respectively. Sean's Social
Security number is 123-45-6788, and Debra's Social Security
number is 123-45-6787. Tim is a self-employed businessperson
(sole proprietor of an unincorporated business), and Sarah is a
corporate executive. Tim has the following income and expenses
from his business in 2019.
$325,000
201,000
Gross income
Business expenses
Records related to Sarah's employment provide the following information.
Salary
Unreimbursed travel expenses (including $200 of meals)
$145,000
1,600
Other pertinent information for the tax year includes the following.
Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000),
and sold on August 1, 2019
Proceeds from sale of stock acquired on September 18, 2018
(cost of $5,000), and sold on October 5, 2019
Wages paid to full-time domestic worker for housekeeping and
child supervision
$9,800
3,800
10,000
7,000
27,900
31,850
20,000
Interest income received
Total itemized deductions (not including any potential deductions above)
Federal income tax withheld
Estimated payments of Federal income tax
Compute the net tax payable or refund due for Tim and Sarah
Lawrence for 2019.

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