In the 2019 tax year, Michelle paid the following amounts relating to her 2017 tax return: Tax deficiency $5,000 Negligence penalty 1,000 Interest 500 Underpayment of estimated tax penalty 350 Which of the above items may be deducted on Michelle’s 2019 individual income tax return?

In the 2019 tax year, Michelle paid the following amounts relating to her 2017 tax return: Tax deficiency $5,000 Negligence penalty 1,000 Interest 500 Underpayment of estimated tax penalty 350 Which of the above items may be deducted on Michelle’s 2019 individual income tax return?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions

Section: Chapter Questions

Problem 49P: During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If...

See similar textbooks

Related questions

Q: During 2020, Rick and his wife, Sara, had the following items of income and expense to report:…

A: Given that: Rick and Sara both are husband and wife

Q: Macey, married with two dependent children, had the following income and expenses for 2019: Salary,…

A: Income tax payable is the amount which is yet to be paid to the government for the current year. It…

Q: For 2018, Roberta is a self-employed truck driver with earnings of $45,000 from her business. During…

A: Payroll taxes: An employer is required to withhold from the wages of the employee many taxes…

Q: In the 2018 tax year, Michelle paid the following amounts relating to her 2016 tax return: Tax…

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: Alice is single and self-employed in 2020. Her net business profit on her Schedule C for the year is…

A: Self employment tax rate in 2020 = 15.3% Medicare tax rate = 2.9%

Q: Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is…

A: As of the year 2021, the self-employment tax rate is 15.3% consisting of 12.4% of social security…

Q: Ruth and Gaston file a joint tax return. Ruth earned $14,000 during the year while Gaston earned…

A: Given the following information: Ruth earned $14,000 during the year Gaston earned $8,000 for the…

Q: Alice is single and self-employed in 2021. Her net business profit on her Schedule C for the year is…

A: Self employment tax for 2021 is 15.3% of net…

Q: Aliya files her current year tax return on June 18 of the following year. On October 8 she pays the…

A: Late filling Penalities Internal Revenue Service imposes the late penalities whether the taxpayer is…

Q: Rebecca and Gregory, a married couple filing a joint return, reported adjusted gross income of…

A: ANSWER Amount $ 500 of state income tax refund will be included in gross income of 2020. Working…

Q: Should this person file for a standard deduction or itemized deduction? They are filing MFJ for the…

A: For 2020 Tax Year, Standard Deduction for 2020 Tax Year => $ 24,800 Itemized Deductions are…

Q: Tyler, a single taxpayer, generates a net operating loss of $12,000 in 2017. He also generates a net…

A: Given values: Workings: Net operating loss = $ 12000 in 2017

Q: Ms. Anna Frozen operates an ice cream store while she offers bookkeeping services to her clients. In…

A: An individual who has an income source purely from self-employment and their turnover of gross sales…

Q: r. P is an unmarried individual with no dependent children. He reports the following information.…

A: Taxable income is the income, where government imposed the tax. This income is more than wages and…

Q: Jeremy earned $101,200 in salary and $6,600 in interest income during the year. Jeremy’s employer…

A: AGI deduction=0 Adjusted gross income=107800-0 =107800

Q: Mani Pakyaw failed to file and pay his income tax return for the year 2019 which should have been…

A: Since the questions have four subparts, we will be solving only the first three of them. Income tax…

Q: Eva received $73,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $16,000 in…

A: Step 1:Eva is a self-employed contractor; Eva can file the return after receiving considerable…

Q: Cindy had the following income and deductions listed on her 2020 individual income tax return.…

A: To determine Net Operating Loss, business income and business expenses will be considered.

Q: Charles and Joan Thompson file a joint return. In 2019, they had taxable income of $90,160 and paid…

A: 2020 tax slab of married filing jointly is used to calculate the amount of the tax.

Q: Ms. White has net tax owing for 2017 of $4,500, net tax owing for 2018 of $8,000, and estimated net…

A: Taxes are the amount of dues and obligations which needs to be settled or paid by the business on…

Q: Wanda, a single taxpayer, has alternative minimum taxable income of $149,200 for 2020. Her regular…

A: Alternative Minimum Tax (AMT) is a tax liable on the minimum income earned by a person in the United…

Q: n. What is the amount of Roberta's self employment tax (Social Security and Medicare taxes)…

Q: During the year ended 30 June 2019 Michael, a resident taxpayer, received salary and wages income of…

A: Salary and wages = $26,000 Franked dividend = $9,800 Franking credits = $4,200 PAYG instalments…

Q: Assume Edgar (age 45), a single taxpayer, has total itemized deductions of $19,252 for 2019, which…

A: Income tax: It is the amount a person is liable to pay on the earned amount in an accounting…

Q: Assuming Fred itemizes, how much state income tax deduction should he report on his 2019 federal…

A: Payroll: The total payment that a company is required to pay to its employee for the services…

Q: Victoria's 2019 tax return was due on April 15, 2020, but she did not file it until June 12, 2020.…

A: Penalties are levied on late tax return filings unless an extension is filed by the tax payer. These…

Q: Juanita, single and age 43, reports the following items for 2019: Salary $60,000 Interest income…

A: Taxable Income is determined by taking all heads of Income. It is the amount of income used to…

Q: Eva received $73,000 in compensation payments from JAZZ Corp. during 2019. Eva incurred $16,000 in…

A: Step 1: Eva is a self-employed contractor, Eva can file the return after receiving considerable…

Q: Charles and Joan Thompson file a joint return. In 2019 they had taxable income of $92,370 and paid…

A: All amounts are in dollar ($).

Q: Mike and Sally Card file a joint return for the 2020 tax year. Their adjusted gross income is…

A: Interest deduction for Investments = $7000 - $500 = $6500 (The rest is carried forward) Interest…

Q: Victoria's 2019 tax return was due on April 15, 2020, but she did not file it until June 12, 2020.…

A: A tax is referred to as a charge on the income earned by the corporation and individuals. The tax is…

Q: In 2020, Ashley earns a salary of $ 55,000, has capital gains of $ 3,000, and receives interest…

A: Tax refers to the amount charged by the government from the individuals and organizations on the…

Q: In 2019, Michael has net short-term capital losses of $1,500, a net long-term capital loss of…

A: Capital Gains: When a profit is earned after selling a capital asset like a stock, real estate, or…

Q: In 2020, Shelly had net earnings from her business of $160,000. What is the amount of Shelly’s…

A: Self-employed tax is a combination of social security tax and Medicare taxes. The self-employment…

Q: Ms. Perry operates a convenience store while she offers bookkeeping services to her clients. In…

A: Tax Due = 8% x Taxable Income

Q: During 2019, Dale incurs the following deductible expenses: $1,400 in state income taxes, $3,400…

A: Taxable income is the percentage of income used to determine the amount of tax that a person or a…

Q: In December 2020, Ryan paid $31,230 for an insurance policy that covers his business property for…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Jack paid $1,800 in interest for his student loan in 2021. What is the tax treatment of this…

A: Interest paid on an eligible student loan during the year is referred to as student loan interest.…

Q: In 2019, Tim, a single taxpayer, has ordinary income of $29,000. In addition, he has $2,000 in…

A: Adjusted Gross income: It is measure that is used in determining the income from the gross…

Q: Julie filed a valid extension for her 2020 tax return, giving her until October 15, 2021, to file…

A: Income tax is the tax paid by an individual or an entity on the income earned in a particular year…

Q: In 2020, Joan Cannon incurred the following expenses relating to her vacation home: Mortgage…

A: Tax: It is the amount which has to be paid by the individual and the corporation to the Federal…

Q: The IRS determined that John underpaid his 2016 tax liability by $6,000 due to negligence. In 2018,…

A: Answer a: There will be no further deduction since he paid the underpayment sum of $1,000. So…

Q: A taxpayer filed his income tax return on June 30, 2019. The deadline for the return was April 15,…

A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…

Q: Diego, age 28, married Dolores, age 27, in 2019. Their salaries for the year amounted to $80,000 and…

A: Tax liability: When the assessee is earned the income of among any of the sources of income then its…

Q: During the tax year, Jose paid $10,000 for eligible tuition. In 2021, how much of this spending is…

A: Deduction U/S 80C for individual and High-income tax Act 1961 Deduction available for payment of…

Q: Is RR allowed to avail himself of the eight percent (8%) income tax? How will RR’s tax liability be…

A: Tax liability is the liabilities which have to be computed as per the tax rates specified by the…

Q: Mary is self-employed for 2019. Mary estimates her required annual estimated tax payment for 2019 to…

A: Tax:- It is the amount which an individual pays on his or her taxable income as per the guideline…

Q: Lucinda is a self-employed veterinarian in 2019. Her Schedule C net earnings are $86,000 for the…

A: A small-business owner, contractor or freelancer has to pay self-employment income tax on their…

Q: Jose paid $10,000 for qualified tuition during the tax year

A: Deduction U/S 80C for individuql and HUF,Income tax Act 1961 Deduction available for payment of…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
Renee and Sanjeev Patel, who are married, reported taxable income of 1,008,000 for 2019. They incurred positive AMT adjustments of 75,000 and tax preference items of 67,500. The couple itemizes their deductions. a. Compute the Patels AMTI for 2019. b. Compute their tentative minimum tax for 2019.
During the 2019 tax year, Brian, a single taxpayer, received $ 7,400 in Social Security benefits. His adjusted gross income for the year was $14,500 (not including the Social Security benefits) and he received $ 30,000 in tax-exempt interest income and has no for-AGI deductions, Calculate the amount of the Social Security benefits that Brian must include in his gross income for 2019. SIMPIFIED TAXABLE SOCIAL SECURITY WORKSHEET (FOR MOST PEOPLE) 1. Enter the total amount of Social Security income. 2. Enter one-half of line 1 3. Enter the total of taxable income items on Form 1040 except Social Security income. 4. Enter the amount of tax-exempt interest income. 5. Add lines 2,3, and 4 6. Enter all adjustments for AGl except for student loan interest, the domestic production activities deduction, and the tuition and fees deduction. 7. Subtract line 6 from line 5 . If zero or less, stop here, none of the Social Security benefits are taxable. 8. Enter $ 25,0001 $ 32,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 9. Subtract line 8 from line 7 . If zero or less, enter -0 - Note: If line 9 is zero or less, stop here; none of your benefits are faxable. Otherwise, go on to line 10 10. Enter $ 9,0001 $12,000 if married filing jointly; 0 if married filing separately and living with spouse at any time during the year) 11. Subtract line 10 from line 9. If zero or less, enter -0 -. 12. Enter the smaller of line 9 or line 10 . 13. Enter one-half of line 12 14. Enter the smaller of line 2 or line 13 . 15. Multiply line 11 by 85 (. 85 ). If line 11 is zero, enter -0 -. 16. Add lines 14 and 15 17. Multiply line 1 by 85(.85) 18. Taxable benefits. Enter the smaller of line 16 or line 17 . 1.____________ 2.____________ 3.____________ 4.____________ 5.____________ 6.____________ 7.____________ 8.____________ 9.____________ 10.____________ 11.____________ 12.____________ 13.____________ 14.____________ 15.____________ 16.____________ 17.____________ 18.____________
Emily, who is single, sustains an NOL of 7,800 in 2019. The loss is carried forward to 2020. For 2020, Emilys income tax information before taking into account the 2019 NOL is as follows: The 2019 single standard deduction is 12,200; Emilys itemized deductions will exceed the 2020 single standard deduction (after adjustment for Inflation). The medical expense AGI floor is 10% In 2019. How much of the NOL carryforward can Emily use in 2020, and what is her adjusted gross income and her taxable income?
Kana is a single wage earner with no dependents and taxable income of $205,000 in 2019. Her 2018 taxable income was $155,000 and tax liability was $31,490. Calculate the following (note: this question requires the use of the tax tables in Appendix A): Kana's 2019 income tax liability $_______________ Kana's minimum required 2019 annual payment necessary to avoid penalty $______________
During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If Inez has taxable income of 158,000, how much income tax results? b. If Inez has taxable income of 35,000, how much income tax results?