Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William. Mrs. Yank works as a medical technician in a

Mrs. Cora Yank (age 42) is divorced and has full custody of her 10-year-old son, William.

  • Mrs. Yank works as a medical technician in a Chicago hospital. Her salary was $38,400, from which her employer withheld $1,045 federal income tax and $2,938 employee FICA tax.
  • Several years ago, Mrs. Yank was seriously injured in a traffic accident caused by another drivers negligence. This year, she received a $25,000 settlement from the drivers insurance company: $20,000 as compensation for her physical injuries and $5,000 for lost wages during her convalescent period. Because she was unable to work for the first seven weeks of the year, she collected $1,400 unemployment compensation from the state of Illinois.
  • Mrs. Yank earned $629 interest on a savings account. She contributed $800 to a traditional IRA. She is not an active participant in any other qualified retirement plan.
  • Mrs. Yank paid $10,800 rent on the apartment in which she and William live. She received $1,600 alimony and $2,350 child support from her former husband under a divorce agreement executed in 2013.
  • Mrs. Yank is covered under her employers medical reimbursement plan. However, this years medical bills exceeded her reimbursement limit by $1,630.
  • Mrs. Yank paid $1,062 income tax to Illinois.
  • Mrs. Yank spent $470 on hospital shoes and uniforms. Her employer didnt reimburse her for this expense.
  • Mrs. Yank paid $1,300 for after-school child care for William.

Required: From the above information, compute Mrs. Yanks 2020 federal income tax (including any AMT) and the amount due with her Form 1040 or the refund she should receive. Assume the tax year is 2020. Use Individual tax rate schedules and Standard deduction table. (Round all your intermediate calculations and final answers to the nearest whole dollar amount.)

AGI-

Taxable Income-

Mrs. Y reg income tax-

AMT-

Mrs.Y total tax Liab (AMT included)-

Refund-

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_2

Step: 3

blur-text-image_3

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

Pioneers Of A Profession Chartered Accountants To 1879

Authors: Jas. C. Stewart

1st Edition

0367532557, 9780367532550

More Books

Students also viewed these Accounting questions