Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 5, Problem 23MCQ
To determine
Concept Introduction:
Deductions are the allowance given to the taxpayer as a deduction from the gross income to calculate the taxable income. Every deduction has some conditions and limits of the amount. Deductions can be for business or personal expenses.
To choose:The itemized deduction for state and local taxes.
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Based on the following data, will Ann Wilton receive a federal tax refund or owe additional taxes in 2019?
Taxable Income
Tax Rate
0–$47,630
15%
$47,630–$95,259
20.5%
$95,259–$147,667
26%
$147,667–$210,371
29%
Net income(line 23600)
$
50,650
Deductions to determine net income
$
11,840
Federal income tax withheld
$
6,964
Total non-refundable tax credit amounts,excluding medical expenses
$
10,319
Medical expenses
$
2,700
The itemized deduction for state and local taxes in 2020 is
a.Total taxes less 10 percent of AGI
b.Limited to no more than $10,000
c.Deductible if your home value is less than $750,000
d.Only deductible if the taxes are business related
e.Unlimited
Estimated Tax Requirement. Zeta Corporation's taxable income for 2019 was $1.1 million,
on which Zeta paid federal income taxes of $231,000. Zeta estimates calendar year 2020’s
taxable income to be $2 million, on which it will owe $420,000 in federal income taxes.
a. What are Zeta's minimum quarterly estimated tax payments for 2020 to avoid an un-
derpayment penalty?
b. When is Zeta's 2020 tax return due?
c. When are any remaining taxes due? What amount of taxes are due when Zeta files its
return assuming Zeta timely pays estimated tax payments equal to the amount deter-
mined in Part a?
d. If Zeta obtains an extension to file, when is its tax return due? Will the extension per-
mit Zeta to delay making its final tax payments?
Chapter 5 Solutions
Income Tax Fundamentals 2020
Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Which of the following is true about the...Ch. 5 - Lyndon, age24, has a nonworking spouse and earns...Ch. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQ
Ch. 5 - Prob. 11MCQCh. 5 - Prob. 12MCQCh. 5 - Prob. 13MCQCh. 5 - Prob. 14MCQCh. 5 - Eliza is a kindergarten teacher for Alexander...Ch. 5 - Prob. 16MCQCh. 5 - Prob. 17MCQCh. 5 - Prob. 18MCQCh. 5 - Prob. 19MCQCh. 5 - Prob. 20MCQCh. 5 - Prob. 21MCQCh. 5 - Prob. 22MCQCh. 5 - Prob. 23MCQCh. 5 - Prob. 24MCQCh. 5 - Prob. 25MCQCh. 5 - Prob. 26MCQCh. 5 - Prob. 27MCQCh. 5 - Prob. 28MCQCh. 5 - Prob. 29MCQCh. 5 - Prob. 30MCQCh. 5 - Which of the following would typically be...Ch. 5 - Which of the following is not a possible...Ch. 5 - Prob. 33MCQCh. 5 - Prob. 34MCQCh. 5 - Evan participates in an HSA carrying family...Ch. 5 - Prob. 2PCh. 5 - Karen, 28 years old and a single taxpayer, has a...Ch. 5 - Phil and Linda are 25 -year-old newlyweds and file...Ch. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Bob is a single, 40 -year-old doctor earning...Ch. 5 - Prob. 9PCh. 5 - During 2019 , Jerry is a self-employed therapist,...Ch. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Janet needs an elevator seat attached to her...Ch. 5 - Lyndon's employer withheld $10,100 in state income...Ch. 5 - Mike sells his home to Jane on April 2,2019 . Jane...Ch. 5 - Prob. 20PCh. 5 - Prob. 21PCh. 5 - Prob. 22PCh. 5 - Ken paid the following amounts for interest during...Ch. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - At the end of 2019, Mark owes $250,000 on the...Ch. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - On January 3,2019, Carey discovers his diamond...Ch. 5 - Prob. 32PCh. 5 - Prob. 33P
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