Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ana, your college friend, is asking for your help in determining her tax refund for 2022. Ana knows that since you are a brilliant

image text in transcribedimage text in transcribed

Ana, your college friend, is asking for your help in determining her tax refund for 2022. Ana knows that since you are a brilliant tax student, you would help her to get back the most tax refund possible. Below are Ana financial items in 2022. Ana's main source of income is from her hair salon. In 2022, her hair salon generated a total revenue of $120k. Ana told you that she believes her total business expenses are $80k. In that, $50k is to pay her only employee/salon manager. $3k is for supplies. $7k is for utilities. $12k is the rent. And the remaining $8k is for food. Ana told you that because the salon closes at 9 pm, they often order food and have dinner at the salon together. Ana completely divorced her husband in October 2019. In 2022, Ana received the full $12k from her ex-husband alimony payment. Ana paid her Texas property tax on her house of $7k in 2022. As a self-employed, Ana has made 4 prepayments in 2022. Her total prepayment is $12k. a) What is Ana's filing status? Ana's filing status is Single since she got divorced. b) What is Ana's gross income? Gross Income: 52k Work done: (120k-80k+12k) c) What is Ana's total For AGI deduction? AGI Deduction: 91k Work done: (80k-8k+12k+7k) d) What is Ana's total Itemized deduction? Ana's total Itemized deduction is 7k which is what she paid for her property tax. e) What is Ana's DQBI (if any)? f) What is Ana's taxable income? Taxable Income: g) What is Ana's income tax liability? h) Can Ana claim any potential tax credit with just the info she provided?

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

Managerial Accounting

Authors: John Wild, Ken Shaw

5th edition

978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600

More Books

Students also viewed these Accounting questions