Question
Given the following information, compute tax due/(refund) for 2022. For the purposes of this problem, please ignore self-employment tax and AMT. Taxpayer is Charlie Brown
Given the following information, compute tax due/(refund) for 2022. For the purposes of this problem, please ignore self-employment tax and AMT. Taxpayer is Charlie Brown and is 30 years old. His SS # is 123-45-6789 Charlie supports his 18 year-old sister Sally, SS # 987-65-4321; she qualifies as a dependent. Assume that Sally lives with Charlie for the entire year. Charlie has wages of $93,000 Charlie received the following interest: o $1,500 from State of Massachusetts bonds o $500 from Citizens bank savings account o $1,000 from IBM bonds o $500 from John Hancock investment Charlie also did some consulting on the side. Information for that business is as follows: o He runs the business under his own name and SS#. He is on the cash basis. o Gross receipts were $3,950 o Advertising expense $200 o Legal expense $500 o Repairs and Maintenance $100 o Taxes and Licenses $1,000 o Utilities $50 o Wages $300 Charlie paid alimony to his ex-wife Peppermint Patty, SS # 123-44-5566, in the amount of $10,000 for the year. Charlie and Peppermint divorced in 2005. Charlie paid unreimbursed, qualified medical expenses during the year of $5,800. Charlie bought a home and paid interest of $10,000. Charlie paid state income tax of $4,200. Charlie paid real estate property tax of $1,000. Charlie contributed to qualified charities in the amount of $900. Charlie had $10,500 in federal taxes withheld from his salary during the year.
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