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Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and Standard

Kaori, an unmarried individual with no dependent children, reports the following information. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and Standard Deduction Table.

Wages $ 65,000
Schedule C net profit 11,650
Interest from savings account 500
Self-employment tax on Schedule C net profit 1,646

Required:

  1. Assume that Kaoris itemized deductions total $9,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.
  2. Assume that Kaoris itemized deductions total $14,000 and Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.

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