Exercise 7-30 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $10,600 in 2023. The loss is carried forward to 2024. For 2024, Emily's income tax information before taking into account the 2023 NOL is as follows: Adjusted gross income Itemized deductions*: Medical [$6,360 - (7.5% x $53,000)] Taxes Interest expense on home mortgage Taxable income $2,385 7,950 15,900 $53,000 (26,235) $26,765 The 2023 single standard deduction is $13,850; Emily's itemized deductions will exceed the 2024 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2024, and what is her adjusted gross income and her taxable income? Emily may use $ of the NOL, resulting in adjusted gross income of $ and taxable income

Single-Schedule X If taxable income is: Over- $ 0 income is: Over- $ 0 But not over- $ 11,000 ........10% 11,000 44,725 $ 1,100.00 +12% 44,725 95,375 5,147.00 +22% 95,375 182,100 16,290.00 +24% 182,100 231,250 37,104.00+ 32% 231,250 578,125. 52,832.00+ 35% 578,125 174,238.25 + 37% Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable 22,000 89,450 190,750 364,200 462,500 693,750 ....... But not over- The tax is: $ 22,000 89,450 190,750 364,200 462,500 693,750 The tax is: of the amount over- ........10% $ 2,200.00 + 12% 10,294.00 +22% 32,580.00 + 24% 74,208.00+ 32% 105,664.00+ 35% 186,601.50+ 37% $ 0 11,000 44,725 95,375 182,100 231,250 578,125 of the amount over- 0 22,000 89,450 190,750 364,200 462,500 693,750 Head of household-Schedule Z If taxable income is: Over- $ 0 If taxable income is: Over- $ 0 But not over- 10% 15,700 $ 1,570.00+ 12% 59,850 6,868.00 +22% 95,350 14,678.00 +24% 182,100 35,498.00+ 32% 231,250 51,226.00+ 35% 578,100 172,623.50 + 37% Married filing…

Exercise 7-30 (Algorithmic) (LO. 7) Emily, who is single, sustains an NOL of $11,120 in 2023. The loss is carried forward to 2024. For 2024, Emily's income tax information before taking into account the 2023 NOL is as follows: Adjusted gross income. Itemized deductions": Medical [$6,672- (7.5% x $55,600)] Taxes Interest expense on home mortgage Taxable income Emily may use s 5,838 X $2,502 8,340 16,680 * The 2023 single standard deduction is $13,850; Emily's itemized deductions will exceed the 2024 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2024, and what is her adjusted gross income and her taxable income? 11,120 of the NOL, resulting in adjusted gross income of $ 44,480✔ and taxable income Feedback $55,600 (27,522) $28,078 Check My Work A net operating loss (NOL) in a particular tax year would produce no tax benefit if the Code did not provide for the carryback and carryforward of such losses to profitable years. To…

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