Question
Compute the taxable income and tax liability for Madison for 2020 based on the following information. She is married, but has not seen or heard
Compute the taxable income and tax liability for Madison for 2020 based on the following information. She is married, but has not seen or heard from her husband in 4 years. She owns her home and paid $2,500 in property taxes and $6,000 in home mortgage interest in 2020.
| Salary | $60,000 |
| Interest Income from City of Olathe Bonds | $2,600 |
| Interest on CD from Bank of America | $2,000 |
| Qualified Dividend from GE stock (she has owned the stock for several years) | $3,000 |
| Life Insurance proceeds on death of Grandfather (Madison was the beneficiary of the policy) | $50,000 |
| Inheritance received on death of Uncle Louie | $18,000 |
| Itemized deductions (mortgage interest and property taxes) | $8,500 |
| Dependents (children ages 12, 11, and 10 all live at home with Madison) | 3 |
|
Age | 44 |
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Principles Of Taxation For Business And Investment Planning 2023
Authors: Sally Jones, Shelley Rhoades-Catanach, Sandra Callaghan, Thomas Kubick
26th Edition
1264229747, 978-1264229741
