Tax Planning for 2022 Alice and Bruce are planning some significant changes for 2022. They have provided you with the following information and asked you to project their taxable income and tax liability for 2022. Assume that the Byrds will itemize their deductions next year. The Byrds will invest the $1,600,000 of life insurance proceeds in short-term certificates of deposit (CDs) and use the interest for living expenses during 2022. They expect to earn interest of $32,000 on the CDs. Bruce has been promoted to regional manager, and his salary for 2022 will be $88,000. He estimates that state income tax withheld will increase by $4,000 and the Social Security tax withheld will be $5,456. Alice, who has been diagnosed with a serious illness, will take a leave of absence from work during 2022, so she will not receive a salary or incur any work-related expenses during the year. The estimated cost for her medical treatment is $15,400, of which $6,400 will be reimbursed by their insurance company in 2022. Their medical insurance premiums will increase to $9,769. Property taxes on their residence are expected to increase to $5,100. The Byrds' home mortgage interest expense and charitable contributions are expected to be unchanged from 2021. John will graduate from college in December 2021 and will take a job in New York City in January 2022. His starting salary will be $46,000. In 2022, the medical expenses are reduced by 7.5% of AGI. Assume that all of the information reported in 2021 will be the same in 2022 unless other information has been presented above. Use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Based on this information, the Bryd's projected itemized deductions for 2022 would be related tax liability for 2022 would be taxable income would be and the

Alice and Bruce are planning some significant changes for 2022. They have provided you with the following information and asked you to project their taxable income and tax liability for 2022. Assume that the Byrds will itemize their deductions next year. - The Byrds will invest the $1,600,000 of life insurance proceeds in short-term certificates of deposit (CDs) and use the interest for living expenses during 2022. They expect to earn interest of $32,000 on the CDs. - Bruce has been promoted to regional manager, and his salary for 2022 will be $88,000. He estimates that state income tax withheld will increase by $4,000 and the Social Security tax withheld will be $5,456. - Alice, who has been diagnosed with a serious illness, will take a leave of absence from work during 2022 , so she will not recelve a salary or incur any work-related expenses during the year. The estimated cost for her medical treatment is $15,400, of which $6,400 will be relmbursed by their insurance compary in 2022. Their medical insurance premiums will increase to $9,769. - Property taxes on their residence are expected to increase to $5,100. - The Byrds' home mortgage interest expense and charitable contributions are expected to be unchanged from 2021. - John will graduate from college in December 2021 and will take a job in New York City in January 2022. His starting salary will be $46,000. In 2022 , the medical expenses are reduced by 7.5% of AGI. Assume that all of the information reported in 2021 will be the tame in 2022 unless other information has been presented above. Use the 2022 Tax Rate Schedule found in Appendix. A of the textbook. Based on this information, the Bryd's projected itemized deductions for 2022 would be taxable income would be and the related tax liability for 2022 would be