Question
Pamela Sanford is a new client of yours and is needing an estimate from you about how much she is going to owe in taxes
Pamela Sanford is a new client of yours and is needing an estimate from you about how much she is going to owe in taxes for 2020. She gives you the following information
1) She worked one job and made $70,000 with $1,500 in Federal Withholding
2) She has one 18 year old son who lived with her all year and is still in highschool
3) She took $30,000 out of a retirement account because she wanted to go on a grand vacation.
4) She paid $18,000 in student loan interest
5) She paid $2,000 in mortgage interest
6) She gave $3,000 to her church
7) She is 40 years old, not married, and lives in Little Rock
REQUIRED:
1) Can she itemize on schedule A based on what she gave us?
2) How much will she owe based on what she gave us? (Explain your answer. I am just looking for an estimate)
3) What other questions would you need to ask her to give her a better estimate?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started