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Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $70,000 per year. Amanda
Bruce and Amanda are married during the tax year. Bruce is a botanist at Green Corporation. Bruce earns a salary of $70,000 per year. Amanda owns an accounting practice as a sole proprietor (it qualifies as a full trade or business). Amanda generates $100,000 of revenues during the year. She has the following business payments associated with her firm: Utilities: $2,000 Office Rent: $15,000 Self-Employment Tax (hers): $10,000 Salary for her secretary: $25,000 Fines/Penalties: $2,500 State Income Tax (from business): $6,000 Payroll Taxes (secretary's): $2,000 Meals: $1,200 Payment to officer to let her go from speeding while on her way to a client meeting $100 They also have the following personal expenses during the year: Medical Expenses: $15,500 State & Local Taxes (personal): $11,000 Federal Income Tax Payments (personal): $10,000 Cash Charitable Contributions: $20,000 The standard deduction amounts are listed below: Single: $12,200 Head of Household: $18,350 Married Filing Jointly: $24,400 Calculate the appropriate amounts for Bruce and Amanda on the following page. Please show your work for maximum points
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