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Ana, your college friend, is asking for your help in determining her tax refund for 2020. Ana knows that since you are a brilliant tax
Ana, your college friend, is asking for your help in determining her tax refund for 2020. 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 2020.
- Anas main source of income is from her hair salon. In 2020, her hair salon generates the total revenue of $120k.
- Ana told you that she believes her total business expenses is $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 2020, Ana receive the full $12k from her ex-husband.
- Ana paid her Texas property tax of $7k in 2020.
- Ana also donate $1k for the Covid-19 foundation in 2020. Through your research, you know that the foundation is a qualified public charity operating foundation.
- As a self-employed, Ana have made 4 prepayments in 2020. Her total prepayment is $12k.
- What is Anas filing status?
- What is Anas gross income?
- What is Anas total For AGI deduction?
- What is Anas total Itemized deduction?
- What is Anas DQBI (if any)?
- What is Anas taxable income?
- What is Anas income tax liability?
Can Ana claim any potential tax credit with just the info she provided?
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