Chapter 2 Handout 2020 JOHN SALARY MARY SALARY DIVIDEND INCOME GIFT FROM UNCLE LUIGI CAPITAL GAIN CAPITAL LOSS BUSINESS INCOME BUSINESS EXPENSES RENTAL INCOME RENTAL EXPENSES MUNICIPAL BOND INTEREST TRA PAYMENT DEPENDENCY EXEMPTIONS (child 14 yers of age) child 19 yers of age) ITEMIZED DEDUCTION FEDERAL TAX PAID 25,000 60,000 6,000 10,000 6,000 (10,000) 40,000 17,000 22,000 22,000 6,000 12,000 2 19,000 7,000 COMPUTE: ALL INCOME GROSS INCOME ADJUSTED GROSS INCOME TAXABLE INCOME NET TAX LIABILITY John salany Mary Salary Dividend income Girt Business income Municipal Bond interes. All income 25,ooo CD, DDD CL.DDO 10 000 90. DDD 22. Dob COOOD 169 000 10. ODO Less exclusions Girt Humicipal bond interes Gross income 153,000 23,00 2012 Less met capital Loss 3,000 Business Expense 12.000 Rantal expense 22.0DO IRA Payment 12 000 totol deb for AGI 54, OBO Adjusted Gross income 99.00 Less: Standard deduction 29, 300 Qualified Business income deduction, taxable income 69,600 Gross tax (mes) Less child credit 2.000 Depend Credit 500 met tox 5.957 7,000 Refund 4,600/ 7 957 tax Paia 1,543 Chapter 2 Handout 2020 JOHN SALARY MARY SALARY DIVIDEND INCOME GIFT FROM UNCLE LUIGI CAPITAL GAIN CAPITAL LOSS BUSINESS INCOME BUSINESS EXPENSES RENTAL INCOME RENTAL EXPENSES MUNICIPAL BOND INTEREST TRA PAYMENT DEPENDENCY EXEMPTIONS (child 14 yers of age) child 19 yers of age) ITEMIZED DEDUCTION FEDERAL TAX PAID 25,000 60,000 6,000 10,000 6,000 (10,000) 40,000 17,000 22,000 22,000 6,000 12,000 2 19,000 7,000 COMPUTE: ALL INCOME GROSS INCOME ADJUSTED GROSS INCOME TAXABLE INCOME NET TAX LIABILITY John salany Mary Salary Dividend income Girt Business income Municipal Bond interes. All income 25,ooo CD, DDD CL.DDO 10 000 90. DDD 22. Dob COOOD 169 000 10. ODO Less exclusions Girt Humicipal bond interes Gross income 153,000 23,00 2012 Less met capital Loss 3,000 Business Expense 12.000 Rantal expense 22.0DO IRA Payment 12 000 totol deb for AGI 54, OBO Adjusted Gross income 99.00 Less: Standard deduction 29, 300 Qualified Business income deduction, taxable income 69,600 Gross tax (mes) Less child credit 2.000 Depend Credit 500 met tox 5.957 7,000 Refund 4,600/ 7 957 tax Paia 1,543