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CP 17-01 (Static) (LO 17-1 through LO 17-6) Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). Blake's gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300. Valerie's salary from GuiTech, an S corporation, was $29,400. Valerie owns 16 percent of GuiTech's outstanding stock. Her pro rata share of GuiTech's ordinary business income was $13,790, her pro rata share of GuiTech's net loss from rental real estate was $8,100, and she received a $7,000 cash distribution from GuiTech. The ordinary income from GuiTech is qualified business income. Blake received a $15,000 cash gift from his grandmother. Valerie won $6,400 in the Maryland state lottery. The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain. Blake paid $12,000 alimony to a former spouse under a divorce agreement executed in 2011. The Meyers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence. The Meyers paid $7,000 state income tax and $4,200 state and local sales tax. Valerie contributed $1,945 to the First Baptist Church. . Required: On the basis of the above information, compute the Meyers' 2020 federal income tax (including any AMT) on their joint return. Assume the taxable year is 2020. Use Individual tax rate schedules, Standard deduction table and Tax rates for capital gains and qualified dividends. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975 + 12% of excess over $19,750 Over $80,250 but not over $171,050 $9,235 + 22% of excess over $80,250 Over $171,050 but not over $326,600 $29,211 + 24% of excess over $171,050 Over $326,600 but not over $414,700 $66,543 + 32% of excess over $326,600 Over $414,700 but not over $622,050 $94,735 + 35% of excess over $414,700 Over $622,050 $167,307.50 + 37% of excess over $622,050 Married Filing Separately If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $163,300 Over $207,350 but not over $311,025 $47,367.50 + 35% of excess over $207,350 Over $311,025 $83,653.75 + 37% of excess over $311,025 Heads of Household If taxable income is: The tax is: Not over $14,100 10% of taxable income Over $14,100 but not over $53,700 $1,410 + 12% of excess over $14,100 Over $53,700 but not over $85,500 $6,162 + 22% of excess over $53,700 Over $85,500 but not over $ 163,300 $13,158 +24% of excess over $85,500 Over $163,300 but not over $207,350 $31,830 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $45,926 + 35% of excess over $207,350 Over $518,400 $154,793.50 + 37% of excess over $518,400 Single If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $47,367.50 + 35% of excess over $207,350 Over $518,400 $156,235 + 37% of excess over 518,400 Married filing jointly and surviving spouses Married filing separately Head of household Single $24,800 12,400 18,650 12,400 Married filing jointly and surviving spouses Married filing separately Head of household Single $24,800 12,400 18,650 12,400 Tax rates for capital gains and qualified dividends. Rate Married Filing Married Filing Single Head of Jointly Separately Household 0%* $0-$80,000 $0-$40,000 $0 - $40,000 $0 - $53,600 15%** $80,001 - $40,001 - $40,001 - $53,601 - $496,600 $248,300 $441,450 $469,050 20% $496,601+ $248,301+ $441,451+ $469,051+ The highest income amount in this range for each filing status is referred to as maximum zero rate amount. ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount. Amount Adjusted gross income (AGI) Taxable income Mr. and Mrs. Meyer's regular income tax liability (after applicable credits) AMT Mr. and Mrs. Meyer's total tax liability (including AMT) CP 17-01 (Static) (LO 17-1 through LO 17-6) Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). Blake's gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300. Valerie's salary from GuiTech, an S corporation, was $29,400. Valerie owns 16 percent of GuiTech's outstanding stock. Her pro rata share of GuiTech's ordinary business income was $13,790, her pro rata share of GuiTech's net loss from rental real estate was $8,100, and she received a $7,000 cash distribution from GuiTech. The ordinary income from GuiTech is qualified business income. Blake received a $15,000 cash gift from his grandmother. Valerie won $6,400 in the Maryland state lottery. The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain. Blake paid $12,000 alimony to a former spouse under a divorce agreement executed in 2011. The Meyers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence. The Meyers paid $7,000 state income tax and $4,200 state and local sales tax. Valerie contributed $1,945 to the First Baptist Church. . Required: On the basis of the above information, compute the Meyers' 2020 federal income tax (including any AMT) on their joint return. Assume the taxable year is 2020. Use Individual tax rate schedules, Standard deduction table and Tax rates for capital gains and qualified dividends. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975 + 12% of excess over $19,750 Over $80,250 but not over $171,050 $9,235 + 22% of excess over $80,250 Over $171,050 but not over $326,600 $29,211 + 24% of excess over $171,050 Over $326,600 but not over $414,700 $66,543 + 32% of excess over $326,600 Over $414,700 but not over $622,050 $94,735 + 35% of excess over $414,700 Over $622,050 $167,307.50 + 37% of excess over $622,050 Married Filing Separately If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $163,300 Over $207,350 but not over $311,025 $47,367.50 + 35% of excess over $207,350 Over $311,025 $83,653.75 + 37% of excess over $311,025 Heads of Household If taxable income is: The tax is: Not over $14,100 10% of taxable income Over $14,100 but not over $53,700 $1,410 + 12% of excess over $14,100 Over $53,700 but not over $85,500 $6,162 + 22% of excess over $53,700 Over $85,500 but not over $ 163,300 $13,158 +24% of excess over $85,500 Over $163,300 but not over $207,350 $31,830 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $45,926 + 35% of excess over $207,350 Over $518,400 $154,793.50 + 37% of excess over $518,400 Single If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $47,367.50 + 35% of excess over $207,350 Over $518,400 $156,235 + 37% of excess over 518,400 Married filing jointly and surviving spouses Married filing separately Head of household Single $24,800 12,400 18,650 12,400 Married filing jointly and surviving spouses Married filing separately Head of household Single $24,800 12,400 18,650 12,400 Tax rates for capital gains and qualified dividends. Rate Married Filing Married Filing Single Head of Jointly Separately Household 0%* $0-$80,000 $0-$40,000 $0 - $40,000 $0 - $53,600 15%** $80,001 - $40,001 - $40,001 - $53,601 - $496,600 $248,300 $441,450 $469,050 20% $496,601+ $248,301+ $441,451+ $469,051+ The highest income amount in this range for each filing status is referred to as maximum zero rate amount. ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount. Amount Adjusted gross income (AGI) Taxable income Mr. and Mrs. Meyer's regular income tax liability (after applicable credits) AMT Mr. and Mrs. Meyer's total tax liability (including AMT)