Question
Samantha is a single individual with no dependents. In 2020, she had total income of $62,000, of which $1,500 is from municipal bond interest. She
Samantha is a single individual with no dependents. In 2020, she had total income of $62,000, of which $1,500 is from municipal bond interest. She has FOR AGI deductions of $2,000, itemized deductions of $7,300 and tax credits of $250. She also made estimated tax payments of $5,000. Assume the deduction for qualified business income for individual taxpayers does not apply.
a. Compute Samantha’s taxable income for 2020. Salary
b. Compute Samantha’s tax due for 2020.
c. Assume that Samantha is a C Corporation instead of an individual and all of the deductions are business related. What would the corporation’s tax due be for 2020?
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Get StartedRecommended Textbook for
Concepts In Federal Taxation
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
19th Edition
978-0324379556, 324379552, 978-1111579876
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