Question
Mr. and Mrs. Simpson have the following income items: Mr. Simpsons Schedule C net profit $91,320 Mrs. Simpsons Schedule C net loss (7,480) Mrs. Simpsons
Mr. and Mrs. Simpson have the following income items:
Mr. Simpsons Schedule C net profit | $91,320 | ||
Mrs. Simpsons Schedule C net loss | (7,480) | ||
Mrs. Simpsons taxable pension | 32,300 | ||
Interest Income | 21,200 | ||
Mr. Simpsons self-employment tax was $12,903. The couple has $26,050 itemized deductions. Mrs. Simpson's Schedule C net business profit is qualified business income (non-service).
Required: Compute the couple's income tax on a joint return. Assume the taxable year is 2020. Use Individual Tax Rate Schedules and Standard Deduction Table. (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
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Please help me on the Taxable income and income tax. I found the AGI, but the numbers I came up with said it was wrong for taxable income and income tax.
Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975 + 12% of excess over $19,750 Over $80,250 but not over $171,050 $9,235 + 22% of excess over $80,250 Over $171,050 but not over $326,600 $29,211 + 24% of excess over $171,050 Over $326,600 but not over $414,700 $66,543 + 32% of excess over $326,600 Over $414,700 but not over $622,050 $94,735 + 35% of excess over $414,700 Over $622,050 $167,307.50 + 37% of excess over $622,050 Married Filing Separately If taxable income is: The tax is: Not over $9.875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 +24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $163,300 Over $207,350 but not over $311,025 $47,367.50 + 35% of excess over $207,350 Over $311,025 $83,653.75 + 37% of excess over $311,025 Heads of Household If taxable income is: The tax is: Not over $14,100 10% of taxable income Over $14,100 but not over $53,700 $1,410 + 12% of excess over $14,100 Over $53,700 but not over $85,500 $6,162 + 22% of excess over $53,700 Over $85,500 but not over $163,300 $13,158 +24% of excess over $85,500 Over $163,300 but not over $207,350 $31,830 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $45,926 + 35% of excess over $207,350 Over $518,400 $154,793.50 + 37% of excess over $518,400 Single If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $ 163,300 Over $207,350 but not over $518,400 $47,367.50 + 35% of excess over $207,350 Over $518,400 $156,235 + 37% of excess over 518,400 Married filing jointly and surviving spouses Married filing separately Head of household Single $24,800 12,400 18,650 12,400Step by Step Solution
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