Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tanesha, aged 66, is single. She has the following income and expenses in 2020: $43,000 1,200 10,000 Net income from sole proprietorship business Interest income

image text in transcribed
image text in transcribed
Tanesha, aged 66, is single. She has the following income and expenses in 2020: $43,000 1,200 10,000 Net income from sole proprietorship business Interest income Alimony received in accordance with a 2017 divorce decreo Loss on sale of investments Medical insurance premiums paid (for self-employed taxpayer) Property tax on residence 1,100 3,000 3,850 Charitable contributions 1,350 13,187 Medical expenses One-half of the self-employment tax paid 2,600 State income tax 1,900 Federal income tax $6,700 a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Mot deductible". Deductible for AG Loss on sale of investments Medical insurance premiums paid (for self-employed taxpayer) Property tax on residence Deductible for AGI . Charitable contributions Deductible from AGI Deductible from AGL Deductible from AGI Medical expenses One-half of the self-employment tax paid Deductible for AGI State income tax Deductible from AGI Federal income tax Not deductible The standard deduction for single filing status is $12,400. If applicable, the additional standard deduction for single taxpayers is $1,650. In your computations, when required, round all amounts to the nearest dollar If required, round any computation to the nearest dollar. The standard deduction for single filing status is $1200. If applicable the additional standard deduction for single taxpayers is $1.650. In your computations, when required, round all amounts to the nearest dollar If required, round any computation to the nearest dollar. b. Tanesha's total income is X, and her AG c. Compute the amount of her totalitemized deductions (after any limitations): d. Compute her taxable income

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

Factory Accounts

Authors: John Whitmore

1st Edition

0367494825, 9780367494827

More Books

Students also viewed these Accounting questions