Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 11 4 pts Izzie and Lawrence are married and file a joint tax return. They have a son, Lance, who qualifies for a

image text in transcribed

Question 11 4 pts Izzie and Lawrence are married and file a joint tax return. They have a son, Lance, who qualifies for a $500 dependent tax credit. Izzie owns and operates a store that caters to triathletes. During 2020, she earned $85,000 from her business, but she paid $13,500 in estimated tax payments. This income is considered qualified business income. Lawrence is a personal trainer. During 2020, he earned a $60,000 salary, but his employer withheld $7,200 from his paychecks for federal income taxes. They also received $2,250 in corporate bond interest and $890 in municipal bond interest during 2020. Izzie and Lawrence incurred $8,700 of eligible for AGI deductions and have $14,500 of eligible itemized deductions for 2020. To simplify, please assume that Izzie and Lawrence pay tax at a flat 22%. What is Izzie and Lawrence's tax due or refund for 2020? Please round to two decimal places and enter a refund as a negative number.

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

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

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

7th edition

978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286

More Books

Students also viewed these Accounting questions