please solve this its really hard

this is taxation accounting course

unfortunetly there is no more info regurding this . can u please just try your best ill be greatful

yes taxation accounting

Assignment 4: Individual Income Tax Overview (Male) QUESTION 1 John and Tara Smith are married couples and have been married for 20 years. They have three sons, Andrew (10-year-old) and Mason (14-year-old) who lived together with them in Texas. However, their eldest son, Andy (18-year-old) living close to his university campus. For the year 2018, the Smith elect married filing jointly in filing tax returns. 1. The following are the sources of income received for the year 2018: a. John works as an engineer and received an annual salary of $100,000 and a year-end bonus of $10,000. Tara is a high-school teacher, received an annual salary of $60,000. b. The Smith received $20,000 in the current year from an annuity they purchased last five years. They purchased an annuity that to be paid annually for 15 years, for $150,000. C. The Smith also received rental income of $12,000 for the year. However, they have paid $1,500 agent's commission and $800 real estate taxes. d. The Smith also received an interest income of $1,800 from Austin City bonds that they purchased a few years ago. 2. The Smith also earned income from the disposition of capital assets (stocks) as follows: Short-term capital gain: $13,000 Short-term capital loss: ($8,000) Long-term capital gain: $3,000 Long-term capital loss: ($12,000) 3. John and Tara have made contributions to qualified retirement accounts amounting to $10,000 and $5,000 respectively for the year 2018. 4. The total itemized deductions claimed by the Smith in the current year is $28,000. 5. In the current year, the Smith paid a neighbor of $3,200 to care for their 11-year-old son, Andrew. 6. They also paid $2,500 of tuition fees and $500 for books for Andy to attend the University of Texas during the Fall semester of his second-year study. 7. During the year, John's employer withheld $5,800 of federal income taxes from John's paychecks. REQUIRED: Compute the amount of tax refund or taxes due for John and Tara for the year 2018 as they elect for married filing jointly. Assignment 4. Individual Income Tax Overview ta But not But not income is overs The taxi $ 0 $ 9.525 of taxable income $9525 S 700 25 12 of me 0525 $1200 S 82.500 5350 22 ore Over $38.700 $ 500 $157.500 $14.089 50 plus 20% of the excess Over $2500 $157500 $200 000 $32.089 50 plus 32 of the ce Over $157500 $200.000 $500.000 $45.689 50 plus of the excess Over $200.000 $500.000 - $150 of the Over $500 000 05 13.600 obno $ 13.600 $ 5100 51 350 12 513600 $ 51 800 $ 82.500 $59 2 21 G951 $ 500 $1575003122 GO $157.500 $200.000 $30.698 plus of the $150 5200000 500000 me ces Over 200 000 $500.000 $100 of the G 000 Schedule Y-1-Married Filling Jointly or Qualifying Widower) Schedule Y-2 Married Filling Separately table income is table income is but not Over: But not The taxi $ 0 $ 19.050 10% of taxable income $19.050 $77.400 51.905 plus 12% of the excess $19.050 $77400 $165.000 8.907 plus 22% of the excess over $77.400 $165.000 $315,000 $28,179 plus 24% of the excess Over $165.000 $315.000 $400,000 $64.179 plus 32% of the CSS Over $315.000 5400 000 $600 000 $91,379 plus 35% of the excess Over $600000 600 000 $161.379 37% of the excess Over $600000 0505250 become $95257 700 952 50 plus 12% of the ce S55 $ 38,700 5 82.500 $4.453.50 plus 22% of the excess Over $78.700 $ 82.500 $157,500 $14.089.50 plus 20% of the 2500 $157.500 $200,000 $32.089.50 plus 32% of the ce $157500 $200.000 $300,000 $45.689 50 plus 35% of the excess Over 200 000 $300,000 - 580,689.50 plus 37% of the 200 000 EXHIBIT 4-5 Partial Listing of Common for AGI Deductions Discussed in More Detail For AGI Deduction in These Chapters Alimony paid (pre-2019 decree) Individual Deductions Health insurance deduction for self-employed taxpayers Individual Deductions Rental and royalty expenses Individual Deductions and Tax Consequences of Home Ownership Capital losses et losses limited to $3,000 for the yean Investments One-half of self-employment taxes paid Individual Income Tax Computation and Tax Credits Business expenses Business Income. Deductions, and Accounting Methods Losses on dispositions of assets used in a trade or business Property Dispositions Contributions to qualified retirement accounts (eg. 401Ks Retirement Savings and Deferred and Individual retirement accounts (RAS) Compensation Basic Standard Deduction Amounts 2017 Amount Filing Status Married Filing Jointly Qualifying Widow or Widower Married Filing Separately Head of Household Single $12,700 $12.700 $ 6,350 $9,350 $ 6,350 2018 Amount $24.000 $24.000 $12.000 $18,000 $12,000 "For individuals claimed as a dependent on another return, the 2018 stan- dard deduction is the greater of (1) $1.050 or (2) $350 plus oamed income not to exceed the standard deduction amount of those who are not dependents EXHIBIT 8-9 Child and Dependent Care Credit Percentage If AGI is over but not over then the percentage is 35% $ 0 15,000 17,000 19,000 21.000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit