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Mr. and Mrs. Black have the following tax information for 2021 and file a joint return [ Note : do Not consider AMT when preparing
Mr. and Mrs. Black have the following tax information for 2021 and file a joint return [ Note : do Not consider AMT when preparing the solution problem ] :
Salary - Mr Black | $ 70,000 |
Salary - Mrs Black | $ 80,000 |
Gross receipts from Mr. Black's consulting business | $ 210,000 |
Expenses related to Mr Black's consulting business | $ 118,000 |
Interest from City of Smithville bonds | $ 10,000 |
Itemized deductions : Mortgage interest Real property taxes | $ 22,000 $ 13,000 |
QBID | $ 18,400 |
Withholdings of income tax | $ 18,000 |
Timely made payments of estimated tax (total) | $ 16,000 |
a. Compute their Adjusted Gross Income
b. Assume AGI is $245,000. Compute their taxable income
c. Assume total tax liability is $43,000. What is the net tax due or tax refund ?
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