Question
Ben is a single man, working as a data analyst living in an apartment in Florida and has an annual income of $95,000. Ben bought
Ben is a single man, working as a data analyst living in an apartment in Florida and has an annual income of $95,000. Ben bought $500 worth of stock in Peloton (before the company gained national attention), which now has a total market share value of $4,000. He sells this stock for a long-term capital gain of $3,500. Ben was also gifted $5,000 from his grandparents to help him with the first couple months of rent. He has not yet contributed to a 401(k). He instead donates $1,000 to the Red Cross Foundation and has an HSA, due to being highly involved in weightlifting where he puts away $2,500 annually. What is Bens final income tax owed for the tax year 2020?
Calculate the federal income tax owed; thoroughly show and document your work. Cite relevant sources. Be sure to note if you used the standard deduction or the itemized deduction when calculating his taxes, and explain why.
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