Carl and Renee Simpson are 63 and 62 respectively They file a joint return They had income for 2020 as follows Pension from former employer (Carl) 16,700 Pension from former employer (Renee) 25,950 Interest income from savings account 600 Interest income from City of Miami bonds 3,200 Dividends from Apple stock held for over one year 1,600 Annuity 4,725 Social Security (Carl) 18,672 Social Security (Renee) 21,000 Wages (Carl) 150,000 Wages (Renee) 202,000 The cost of the annuity was $52,000 and they expect to receive a total of 10 years of payments of $525 a month They have received 9 payments through 2020 They had the following expenses as well State income taxes 4,000 Income tax withheld 80,000 Property taxes on home 6,500 Mortgage interest (all is deductible) 22,000 Charitable contributions (cash) 6,800 Sales tax paid 1,000 They also provide over half of the total support of each of the following individuals, all of whom still live at home Their only child, Jennifer, was killed in an automobile accident 10 years ago and they have adopted her 3 children (their grandchildren) Daniel, their son (grandson), age 22 a full time student, who married on Oct 1, has no income of his own and did not file a joint return with his wife, Annie, who earned $11,000 during 2020 Matthew, their son (grandson), age 16, graduated high school in May 2020 He is taking a leap year and will not begin college until 2021 He had total gross income of 6,300 in 2020 JoAnn, their oldest child (grandchild), age 27, is a full time graduate student with a gross income of $4,250 Compute Carl and Renees income tax payable (or refund due) Show all your work Tax rates for 2020 Maximum for this bracket 10 0 19,750 1975 12 19,751 80,250 7260 22 80,251 171,050 19976 24 171,051 326,600 37332 32 326,601 414,700 Dividend Tax Rate 15 for income $80,001 496,600 Gross Income AGI Deductions from AGI Taxable Income Income Tax Assume they are not responsible for any Alternative Minimum Tax and they have paid all the Social Security, Medicare, and state taxes required Remember Dividends are not taxed at the same rate as income Tax Credits (Remember phase outs for credits ) Withholding Refund or Tax Payable

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Carl and Renee Simpson are 63 and 62 respectively. They file a joint return. They had income for 2020 as follows: Pension from former employer

Carl and Renee Simpson are 63 and 62 respectively. They file a joint return. They had income for 2020 as follows:

Pension from former employer (Carl) 16,700

Pension from former employer (Renee) 25,950

Interest income from savings account 600

Interest income from City of Miami bonds 3,200

Dividends from Apple stock held for over one year 1,600

Annuity 4,725

Social Security (Carl) 18,672

Social Security (Renee) 21,000

Wages (Carl) 150,000

Wages (Renee) 202,000

The cost of the annuity was $52,000 and they expect to receive a total of 10 years of payments of $525 a month. They have received 9 payments through 2020.

They had the following expenses as well:

State income taxes 4,000

Income tax withheld 80,000

Property taxes on home 6,500

Mortgage interest (all is deductible) 22,000

Charitable contributions (cash) 6,800

Sales tax paid 1,000

They also provide over half of the total support of each of the following individuals, all of whom still live at home. Their only child, Jennifer, was killed in an automobile accident 10 years ago and they have adopted her 3 children (their grandchildren).

Daniel, their son (grandson), age 22 a full-time student, who married on Oct. 1, has no income of his own and did not file a joint return with his wife, Annie, who earned $11,000 during 2020.
Matthew, their son (grandson), age 16, graduated high school in May 2020. He is taking a leap year and will not begin college until 2021. He had total gross income of 6,300 in 2020.
JoAnn, their oldest child (grandchild), age 27, is a full-time graduate student with a gross income of $4,250.

Compute Carl and Renees income tax payable (or refund due). Show all your work.

Tax rates for 2020 Maximum for this bracket

10% 0-19,750 1975

12% 19,751-80,250 7260

22% 80,251-171,050 19976

24% 171,051-326,600 37332

32% 326,601-414,700 ?

Dividend Tax Rate:

15% for income $80,001-496,600

Gross Income/ AGI?

Deductions from AGI?

Taxable Income?

Income Tax:

Assume they are not responsible for any Alternative Minimum Tax and they have paid all the Social Security, Medicare, and state taxes required. Remember Dividends are not taxed at the same rate as income. ?

Tax Credits (Remember phase-outs for credits.)?

Withholding?

Refund or Tax Payable?