Question
1) In 2020, Mason, age 35 and single, earned wages of $75,000. Mason had no exclusions, and he had adjustments of $1,000. Mason's itemized deductions
1) In 2020, Mason, age 35 and single, earned wages of $75,000. Mason had no exclusions, and he had adjustments of $1,000. Mason's itemized deductions for the year totaled $11,000. Mason has no QBI (and thus no QBI deduction). Mason's employer withheld federal income taxes of $5,000 from Mason's paychecks, and Mason is also entitled to an additional $2,500 tax credit.
What is Mason's taxable income?
AND Using the 2020 single tax rates schedule, what is Mason's federal income tax liability after withholding and tax credits (i.e. the amount due/amount Mason needs to pay)?
2) In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of $500. Mary had adjustments/deductions for AGI of $2,500, and her itemized deductions for the year totaled $21,000. Mary had a QBI deduction of $1,000. Mary is entitled to a tax credit of $2,000. Mary is blind.
What is Mary's taxable income?
3) Marik, age 17, is a dependent of his parents.
Marik earned wages of $600 and had interest income of $900. What is Marik's standard deduction amount for 2020?
Mazik, age 17, is a dependent of his parents.
Mazik earned wages of $12,500 and had no investment income. What is Mazik's standard deduction amount for 2020?
Malik, age 17, is a dependent of his parents.
Malik earned wages of $2,500 and he had investment income of $2,500. What is Malik's standard deduction for 2020?
4) In 2020, Courtney, 16 and a dependent of her mother, had earned income of $4,000 and interest income (unearned) of $9,500. What is Courtney's federal income tax liability (before credits)? Courtney's mother is in the 35% marginal tax bracket.
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