Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please respond quickly: Question: Only calculate the adjusted gross income! (use only relevant data) ALEX'S SALARY: TAXABLE WAGES (FROM HER SMALL S CORPORATION) 22,000 FEDERAL

Please respond quickly: Question: Only calculate the adjusted gross income! (use only relevant data)

ALEX'S SALARY:

TAXABLE WAGES (FROM HER SMALL S CORPORATION)

22,000

FEDERAL INCOME TAX WITHHELD

1,200

STATE INCOME TAX WITHHELD

400

INTEREST INCOME FROM CITIZENS BANK

100

DIVIDEND INCOME FROM E*TRADE SECURITIES (2,500 ARE QUALIFIED DIVIDENDS)

3,000

LONGTERM CAPITAL GAIN DISTRIBUTIONS FROM E*TRADE SECURITIES

1,600

FOREIGN TAX WITHHELD FROM THE E*TRADE DIVIDENDS (TO BE TAKEN AS A TAX CREDIT)

80

ALEX IS A STOCKHOLDER in s CORPORATION AND QUALIFIES FOR THE QBI DEDUCTION:

SHORTTERM CAPITAL GAIN INCOME

1,500
ORDINARY INCOME 2,500
INTEREST INCOME

110

CASH GIFT FROM HER COUSIN 15,000
RECEIVED REPAYMENT OF A LOAN SHE MADE TO A BUSINESS COLLEAGUE 2,000

ALEX HAS BEEN SELFEMPLOYED TOO. SHE USES CASH BASIS ACCOUNTING.

GROSS RECEIPTS

65,000

Deductions-->ALEX'S BUSINESS EXPENSES

ADVERTISING

700

TELEPHONE

1,000

INTERNET

700

EQUIPMENT RENTAL 1,300

LEGAL AND PROFESSIONAL FEES

500

LIABILITY INSURANCE

1,200
OFFICE SUPPPLIES EXPENSE 2,300

ALEX USED HER CAR TO TRAVEL TO CLIENTS. SHE USES THE MILEAGE METHOD TO DEDUCT AUTO EXPENSES.

ITEMIZED DEDUCTIONS:

REAL ESTATE TAXES 2,800

HOME MORTGAGE INTEREST ON $32,000 MORTGAGE

2,400
CASH CHARITABLE CONTRIBUTIONS 300
OUTOFPOCKET MEDICAL EXPENSES (NOT HEALTH INSURANCE PREMIUMS) 1,500
Other:

ALEX PAID NURSERY SCHOOL EXPENSES for ill mother

4,200
ALEX CONTRIBUTED TO A TRADITIONAL IRA. 5,000
ALEX MADE FOUR FEDERAL QUARTERLY ESTIMATED TAX PAYMENTS OF $2,000 EACH. 8,000
ALEX MADE FOUR STATE INCOME TAX PAYMENTS IN 2021 OF $250 EACH. 1,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions