Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have two sons. Their sons are age 10 and 14.

1. Stacie and Ryan are married and file jointly for the 2020 tax year. They have two sons. Their sons are age 10 and 14. Stacie and Ryans wages in total for the year was $133,000. Their employers withheld $18,000 in tax from their wages. In addition to the above, the following occurred the tax year:

  • They moved several states away because of career relocation for Ryan. Their unreimbursed moving costs were $10,000.
  • Stacie and Ryan pay $3,500 of the interest on a loan Ryans postsecondary education.
  • They paid $2,000 in medical insurance premiums for the year. In addition, they paid $1,000 for hospital stay after an emergency room trip for Stacie.
  • The couple paid $250 for an accountant to prepare their taxes.
  • Their accountant calculates that their total state income tax liability is $4,000. The couple pay all their state taxes for the year.

  1. Determine Stacie and Ryans AGI. (6 points)

  1. Ignore your answer in a). Assume that Stacie and Ryans AGI for the year is $120,600. Determine the amount of itemized deduction Stacie and Ryan have available this year. (7 points)

  1. Ignore your answer in b). Assume that the amount of itemized deduction available is $7,500. Using the 2020 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in your book, first determine whether Stacie and Ryan itemize or take the standard deduction. If you determine they itemize, write in the itemized deduction dollar amount given ($7,500). Alternatively, if you determine they will take the standard deduction, write in the standard deduction amount for which they qualify (tied to the appropriate filing status). (6 points)

  1. Ignore your answer in a) - c). Assume that Stacie and Ryans taxable income is $163,250 and their employer withheld $18,000 in tax from their wages. Using the tax rate schedule from Appendix D in your book, determine the amount of taxes due or the amount of refund due. Remember to clearly mark the answer as either the amount of tax due or a refund due (e.g. refunds are negative amounts as represented with parentheses or a negative sign). Assume AMT does not apply, and there are no tax credits available. (6 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Apple Marketing Audit And New Service Product Plan

Authors: Sherry King

1st Edition

3656610797, 978-3656610793

More Books

Students also viewed these Accounting questions

Question

2. List the advantages of listening well

Answered: 1 week ago