Question
Fareh is not married and supports her 12 year old child who lives with her. Fareh works as an employee with gross salaries and wages
Fareh is not married and supports her 12 year old child who lives with her. Fareh works as an employee with gross salaries and wages of $122,000. Farehs only other income was interest of $7,300, qualifying dividends of $3,150, and other information follows:
Contribution to solo(k) retirement plan, withheld from the salary $ 4,500
Loss on sale of Alphatech stock held 2 years -3,700
Mortgage interest on primary residence 4,950
State and local property tax on residence 3,350
Property tax included in personal auto registration 160
State sales taxes paid 370
State income taxes paid 1,800
Charitable contributions of cash 1,750
Political contributions 550
All information is for 2020. Calculate Farehs adjusted gross income, taxable income, and gross tax. Show your work!
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