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Federal Tax question Jane, your college friend, is asking for your help in determining her tax refund for 2020. Jane knows that since you are
Federal Tax question
Jane, your college friend, is asking for your help in determining her tax refund for 2020. Jane knows that since you are a brilliant tax student, you would help her to get back the most tax refund possible. Below are Jane financial items in 2020.
- Janes main source of income is from her hair salon. In 2020, her hair salon generates the total revenue of $120k.
- Jane told you that she believes her total business expenses is $80k. In that, $50k is to pay her only employee/salon manager. $3k is for supplies. $7k is for utilities. $12k is the rent. And the remaining $8k is for food. Jane told you that because the salon closes at 9 pm, they often order food and have dinner at the salon together.
- Jane completely divorced her husband in October 2019. In 2020, Jane receive the full $12k from her ex-husband.
- Jane paid her Texas property tax of $7k in 2020.
- Jane also donate $1k for the Covid-19 foundation in 2020. Through your research, you know that the foundation is a qualified public charity operating foundation.
- As a self-employed, Jane have made 4 prepayments in 2020. Her total prepayment is $12k.
- What is Janes filing status?
- What is Janes gross income?
- What is Janes total For AGI deduction?
- What is Janes total Itemized deduction?
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