Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jason and Katherine Minnow filed a joint return for 2021. Jason earned 300,000 from working at Four Square, Inc. He died on Jan 3, 2021.

image text in transcribed
Jason and Katherine Minnow filed a joint return for 2021. Jason earned 300,000 from working at Four Square, Inc. He died on Jan 3, 2021. He also earned $90,000 from a business he owned which had $35.000 in business expenses. Katherine received $900,000 from a life insurance policy on Jason Katherine also ran a business which had $50,000 in income and $60,000 in expenses. They incurred 15,000 in itemized deductions during the year. Ignore QBI deduction. Assume Jason's employer has withheld the required $900 in additional Medicare (he has over $200,000 in income). You will need to figure out how much additional Medicare they actually owe to see how much of a refund they get. Also assume that the limit for social security (cap is $142,800) was accounted for in Jason's wages. This will affect Jason's self employment taxes. Show all your work What is the gross income? (5 points) What is the adjusted income? (5 points) What is their total taxable income? (5 points) What are their self-employment taxes? (5 points) What is the total tax due (refund) using the Tax Rate schedule? Assume Jason had $17,000 deducted from his pay. (10 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Ethics

Authors: Ronald F. Duska, Brenda Shay Duska, Kenneth Wm. Kury

3rd Edition

1119118786, 9781119118787

More Books

Students also viewed these Accounting questions

Question

discuss the models practical implications for job (re)design.

Answered: 1 week ago

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago