Compute Mary's 2018 Federal income tax payable (or refund due). show you work. then compute her taxes.
Mary McDougal, ape 56 is married files jointly) and has one dependent. She works as a manager at Pets-R-Us, Inc. She owns and operates Clips and Suds and Fun (a pet grooming and pet hotel). Mary is a material participant in the business. She is a cash basis taxpayer. She had health insurance for all months of 2018. During the year, Mary had the following income and expenses: 800 900 $56,000 salary from Pets-R-Us. $32,000 in gross receipts from Clips, Suds and Fun. Expenses connected with Clips, Suds and Fun: Kennel Rent: $5,000 o Supplies: 3,000 o Utilities: 2,400 o Wages to employees 8,000 Payroll taxes Life insurance proceeds on the death of her husband (death on Jan. 3). 60,000 Interest income $5,000 given to her by friends and family of her husband $100 won on a scratch-off lottery ticket $8,300 mortgage interest expense Pets-R-Us withheld $13,000 in Federal income taxes and the appropriate amount of FICA taxes from her wages. Investment income from City of Jacksonville, FL municipal bonds Mary made $3,000 in estimated Federal tax payments. . The property taxes on her residence were $1,200. Sakes taxes from the sales tax tables of $1,210 Charitable contributions to her church of 10% of AGI. Charitable contributions to Augusta University, her husband's alma mater, of $300 Personal casualty gains and losses as follows: o Personal gain, 3,500 o Personal casualty loss (non-Federally declared disaster area). (2,200) o Personal casualty loss (Federally declared disaster area) (6,000) Compute Mary McDougal's 2018 Federal income tax payable (or refund due) Show your work. Mary McDougal, ape 56 is married files jointly) and has one dependent. She works as a manager at Pets-R-Us, Inc. She owns and operates Clips and Suds and Fun (a pet grooming and pet hotel). Mary is a material participant in the business. She is a cash basis taxpayer. She had health insurance for all months of 2018. During the year, Mary had the following income and expenses: 800 900 $56,000 salary from Pets-R-Us. $32,000 in gross receipts from Clips, Suds and Fun. Expenses connected with Clips, Suds and Fun: Kennel Rent: $5,000 o Supplies: 3,000 o Utilities: 2,400 o Wages to employees 8,000 Payroll taxes Life insurance proceeds on the death of her husband (death on Jan. 3). 60,000 Interest income $5,000 given to her by friends and family of her husband $100 won on a scratch-off lottery ticket $8,300 mortgage interest expense Pets-R-Us withheld $13,000 in Federal income taxes and the appropriate amount of FICA taxes from her wages. Investment income from City of Jacksonville, FL municipal bonds Mary made $3,000 in estimated Federal tax payments. . The property taxes on her residence were $1,200. Sakes taxes from the sales tax tables of $1,210 Charitable contributions to her church of 10% of AGI. Charitable contributions to Augusta University, her husband's alma mater, of $300 Personal casualty gains and losses as follows: o Personal gain, 3,500 o Personal casualty loss (non-Federally declared disaster area). (2,200) o Personal casualty loss (Federally declared disaster area) (6,000) Compute Mary McDougal's 2018 Federal income tax payable (or refund due) Show your work
