Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The paragraphs are the problem and the excel is the example of what it is supposed to look like. Formulate this principal fact pattern text
The paragraphs are the problem and the excel is the example of what it is supposed to look like. Formulate this principal fact pattern text into the taxable income formula. I need help I don't understand at all. Thank you so much
In 2019, the worst period of Mairead's* life began. Her husband, Javier, ** and their daughter, Daleesha*** battled all spring about whether Daleesha was going to enroll in college in the fall. Then Javier died suddenly, only two days before Daleesha's high school graduation. Immediately after the funeral service, Daleesha disappeared and Mairead did not talk with her for nearly two years. She did occasionally receive post cards, each sent from a different location, on which Daleesha simply said that she was well. Then during Memorial Day weekend, 2021, Daleesha walked into the house, healthy but essentially broke. She told her mother that, throughout the first summer, she had wandered from odd-job to odd-job, mostly doing day labor on farms. After a couple of months, she heard about an organic farm organization, WWOOF.org (Worldwide Opportunities on Organic Farms), after which she moved from place to place with positions pre-arranged. She said she'd learned a lot about herself as well as organic farming, and now wanted to go back to school and major in sustainable development at the local campus of the state university. Mairead was delighted. After moving back into her old room, Daleesha began helping around the house and outside. One day, she discovered the lawn mower was missing. After establishing the replacement cost was lower than the deductible for claims on her home insurance, Mairead purchased a nearly identical, also used, mower for $250. By the end of June, Daleesha had found a part-time, minimum wage job (averaging ten hours per week at $12.50/hour) that allowed her to get her car repaired, save money for her school books and supplies, and buy some new clothes. Just before she started her new job, she went to the DMV to register her car and get a state driver's license. She was surprised when she was told she needed prescription lenses before a license could be issued. Mairead paid the $950 for the optometrist and a pair of glasses and the next week, filled out the paperwork at work to get Daleesha on her medical plan, now that she was home again. Over the course of the summer Daleesha applied and was accepted into the sustainable development program, receiving a scholarship for half of her tuition as a full-time student. Mairead agreed wholeheartedly to pay the other half of Daleesha's tuition and fees. They celebrated her first day at college on September 26 by going out to the restaurant that had always been the family favorite back before the tough times began in 2019. Mairead is a professor of history, specializing in the history of central Asia from 1100 - 1500 and employed by a private college. In 2021, she earned $125,000 in salary (from which $11,000 in federal and $7,300 of state income taxes were withheld). One of her specialties is the history of weaving in Asia from 700 A.D. on. In order to attempt to duplicate early weaving processes, she owns a replica of an early loom, built so that she can explore its qualities and attributes using wools and dies as authentically sourced as possible. In 2021, she contracted and paid for a new loom, out of period-appropriate woods and using period-appropriate tools. It cost her $17,000. To pay for it, at least in part, she sold her old loom (which had been built several years earlier, but with modern materials and tools). The sale produced a $3,300 long-term $1231 gain. Although Mairead doesn't sell her woven pieces, she makes considerable fees giving lectures, demonstrations, and workshops on the ancient art of weaving. In 2021, those fees totaled $26,000 Only a year before he died, she and Javier had bought a new home, on which they took out a $210,000 mortgage. In 2021, she paid $7,500 interest on the mortgage and $8,250 in property taxes on the house. She has also made charitable contributions of $3,430 to a non-profit corporation involved in international peace issues, S550 to her university's foundation and $100 to National Public Radio (NPR). (All of these recipients are federally tax-exempt organizations.) Javier had been self-employed and, thus, had no formal retirement plan. However, they had carried a life insurance policy on him, the proceeds of which Mairead invested in state bonds and corporate stocks. In 2021, the bonds paid $4,000 in interest, and she received a total of $1,200 in dividends from the stocks. EXAMPLE MaryAnne 2020 Income: 44,000 Wages 61(a)(1) 3,330 Quilts 61(a)(2) 180 Interest 61(a)(4) 11,000 Inheritance 61(a) & Glenshaw Glass Sale of personal car: Exclusions: 1001(a) 3,500 (11,000) Inheritance 102(a) 17.900) GI 47,510 not ded: (4.400) (620) Quilt supplies 162(a); 62(a)(1) 165(03) (200) Charit. contrb. 170;62(a)(22) (191) 1/2 SET 164) 2710*0.9235-0.153*0.5 AGI 46,499 SD or itemized 152: L is not QC b/c fails 152(c)(2) rel'ship test 2b) HOH met:not 5S/m'd; has dep (OR) QR: 152d/2)(): same abode, mbr houshold Lhas no GI, M supports her SD (18,650) SD analysis: 63(c)(2)(B) HOH SD 2020 amt or IDS 12,290) ID analysis: Home mtg (presumed 750K) 6,000 163/h)(3) Contrib to Quilts for Kids 200 170 Med'l (dental) exps meet 213(d)(1)(A) cure aff'g struct of body 9000-1500 from ins 7,500 10%AGI (4,650) 2,850 213(a) Loss on car sale 0 - SIT 940 164(a)(3) Prop taxes 2,300 3,240 164(a)(1) 12,290 27,849 Ti before 199A: 504 199A Not service bus: no threshold test: QBI=20% of (3330-620-191) 199A(b)(2)A). (c)(1) TI 27,345 63(b) Tax liability 2,999 10)(2)(B) 1410+.12" (27345-14100) Credits QR not ac (500) Child tax credit 24h)(4) (4,400) Withholding 31(a) (1,901) Refund In 2019, the worst period of Mairead's* life began. Her husband, Javier, ** and their daughter, Daleesha*** battled all spring about whether Daleesha was going to enroll in college in the fall. Then Javier died suddenly, only two days before Daleesha's high school graduation. Immediately after the funeral service, Daleesha disappeared and Mairead did not talk with her for nearly two years. She did occasionally receive post cards, each sent from a different location, on which Daleesha simply said that she was well. Then during Memorial Day weekend, 2021, Daleesha walked into the house, healthy but essentially broke. She told her mother that, throughout the first summer, she had wandered from odd-job to odd-job, mostly doing day labor on farms. After a couple of months, she heard about an organic farm organization, WWOOF.org (Worldwide Opportunities on Organic Farms), after which she moved from place to place with positions pre-arranged. She said she'd learned a lot about herself as well as organic farming, and now wanted to go back to school and major in sustainable development at the local campus of the state university. Mairead was delighted. After moving back into her old room, Daleesha began helping around the house and outside. One day, she discovered the lawn mower was missing. After establishing the replacement cost was lower than the deductible for claims on her home insurance, Mairead purchased a nearly identical, also used, mower for $250. By the end of June, Daleesha had found a part-time, minimum wage job (averaging ten hours per week at $12.50/hour) that allowed her to get her car repaired, save money for her school books and supplies, and buy some new clothes. Just before she started her new job, she went to the DMV to register her car and get a state driver's license. She was surprised when she was told she needed prescription lenses before a license could be issued. Mairead paid the $950 for the optometrist and a pair of glasses and the next week, filled out the paperwork at work to get Daleesha on her medical plan, now that she was home again. Over the course of the summer Daleesha applied and was accepted into the sustainable development program, receiving a scholarship for half of her tuition as a full-time student. Mairead agreed wholeheartedly to pay the other half of Daleesha's tuition and fees. They celebrated her first day at college on September 26 by going out to the restaurant that had always been the family favorite back before the tough times began in 2019. Mairead is a professor of history, specializing in the history of central Asia from 1100 - 1500 and employed by a private college. In 2021, she earned $125,000 in salary (from which $11,000 in federal and $7,300 of state income taxes were withheld). One of her specialties is the history of weaving in Asia from 700 A.D. on. In order to attempt to duplicate early weaving processes, she owns a replica of an early loom, built so that she can explore its qualities and attributes using wools and dies as authentically sourced as possible. In 2021, she contracted and paid for a new loom, out of period-appropriate woods and using period-appropriate tools. It cost her $17,000. To pay for it, at least in part, she sold her old loom (which had been built several years earlier, but with modern materials and tools). The sale produced a $3,300 long-term $1231 gain. Although Mairead doesn't sell her woven pieces, she makes considerable fees giving lectures, demonstrations, and workshops on the ancient art of weaving. In 2021, those fees totaled $26,000 Only a year before he died, she and Javier had bought a new home, on which they took out a $210,000 mortgage. In 2021, she paid $7,500 interest on the mortgage and $8,250 in property taxes on the house. She has also made charitable contributions of $3,430 to a non-profit corporation involved in international peace issues, S550 to her university's foundation and $100 to National Public Radio (NPR). (All of these recipients are federally tax-exempt organizations.) Javier had been self-employed and, thus, had no formal retirement plan. However, they had carried a life insurance policy on him, the proceeds of which Mairead invested in state bonds and corporate stocks. In 2021, the bonds paid $4,000 in interest, and she received a total of $1,200 in dividends from the stocks. EXAMPLE MaryAnne 2020 Income: 44,000 Wages 61(a)(1) 3,330 Quilts 61(a)(2) 180 Interest 61(a)(4) 11,000 Inheritance 61(a) & Glenshaw Glass Sale of personal car: Exclusions: 1001(a) 3,500 (11,000) Inheritance 102(a) 17.900) GI 47,510 not ded: (4.400) (620) Quilt supplies 162(a); 62(a)(1) 165(03) (200) Charit. contrb. 170;62(a)(22) (191) 1/2 SET 164) 2710*0.9235-0.153*0.5 AGI 46,499 SD or itemized 152: L is not QC b/c fails 152(c)(2) rel'ship test 2b) HOH met:not 5S/m'd; has dep (OR) QR: 152d/2)(): same abode, mbr houshold Lhas no GI, M supports her SD (18,650) SD analysis: 63(c)(2)(B) HOH SD 2020 amt or IDS 12,290) ID analysis: Home mtg (presumed 750K) 6,000 163/h)(3) Contrib to Quilts for Kids 200 170 Med'l (dental) exps meet 213(d)(1)(A) cure aff'g struct of body 9000-1500 from ins 7,500 10%AGI (4,650) 2,850 213(a) Loss on car sale 0 - SIT 940 164(a)(3) Prop taxes 2,300 3,240 164(a)(1) 12,290 27,849 Ti before 199A: 504 199A Not service bus: no threshold test: QBI=20% of (3330-620-191) 199A(b)(2)A). (c)(1) TI 27,345 63(b) Tax liability 2,999 10)(2)(B) 1410+.12" (27345-14100) Credits QR not ac (500) Child tax credit 24h)(4) (4,400) Withholding 31(a) (1,901) Refund Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started