Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show excel work step by step so that I know in the future. Thank you Required information Skip to question [The following information applies

Please show excel work step by step so that I know in the future. Thank you

Required information Skip to question [The following information applies to the questions displayed below.] Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,600. Meg works part time at the same university. She earns $44,400 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) Note: Round your final answers to the nearest whole dollar amount.

Tax Rates for Net Capital Gains and Qualified Dividends

Rate* Taxable Income
Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates
0% $0 - $89,250 $0 - $44,625 $0 - $44,625 $0 - $59,750 $0 - $3,000
15% $89,251 - $553,850 $44,626 - $276,900 $44,626 - $492,300 $59,751 - $523,050 $3,001 - $14,650
20% $553,851+ $276,901+ $492,301+ $523,051+ $523,051+

*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose).

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over: But not over: The tax is:
$ 0 $ 22,000 10% of taxable income
$ 22,000 $ 89,450 $2,200 plus 12% of the excess over $22,000
$ 89,450 $ 190,750 $10,294 plus 22% of the excess over $89,450
$ 190,750 $ 364,200 $32,580 plus 24% of the excess over $190,750
$ 364,200 $ 462,500 $74,208 plus 32% of the excess over $364,200
$ 462,500 $ 693,750 $105,664 plus 35% of the excess over $462,500
$ 693,750 $186,601.5 plus 37% of the excess over $693,750

What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year?

Short-term capital gains $ 2,200
Short-term capital losses 0
Long-term capital gains 13,280
Long-term capital losses (10,100)

The answer is not 9450 or 10275

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

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

11th Edition

978-0132568968, 9780132568968

Students also viewed these Accounting questions