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The response will need to identify, analyze, and reach conclusions about federal tax issues for individual taxpayers. Assume each individual will use a December 31

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The response will need to identify, analyze, and reach conclusions about federal tax issues for individual taxpayers. Assume each individual will use a December 31 year end Stewart and Nanchackson are married and retired. During 2018, they anticipate that Stewart will collect $9,600 of Social Security benefits and Nancy will collect $16,300 of Social Security benefits. The Jacksons also expect to receive $19,500 of distributions from Nancy's section 401(k) account from her former employer, $900 of taxexem pt interest from municipal bonds, $700 of taxable interest and $8 100 of dividends. Stewart inherited antique furniture that his mother had bought for $830 in' 1957. 'The furniture was worth $2,630 when his mother died in November of 2014 and $2,610 when the executor distributed the furniture to Stewart from the estate in January of 2015. Stewart sold the furniture at auction for $2,760 during February of 2018. In January of 2018, Nancy received stock as a gift from her father. Her father purchased the stock in 2016 for $6,170 and, when he gave her the stock in January, it was worth $6,080. Nancy sold the stock for $6,290 early in March of 2018. The Jacksons plan to file one tax return (i.e., they will file a joint federal income tax return) for 2018. Nancy would like to provide some consulting services as an independent contractor in order to earn some money for a down payment on a new car. She believes that she could earn $75 per hour and thinks that she could bill her clients for 400 hours of work before the end of 2018. Nancy believes she would have $13,000 of unreimbursed deductible business expenses as a consultant, and she has determined that the amount of her Social Security benefits would not change if she provided those services. Nancy believes that she would need to net $10,000 from the services, after paying the business expenses and any additional taxes, to make the performance of the services worthwhile. Required: Assume the Jacksons pay income tax at a rate of 22% of their combined adjusted gross incomes. Explain what amount of money, if any, Nancy would have from her consulting services after paying any increase in their combined income and/or other taxes as a result of those services

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