this is the questions I.

Caleb is single. Calculate Taxable Income for Caleb Carter for 2020, based on the following Information:

Salary $100,000 Caleb inherited $400,000 from his great grandfather Interest on Florida Bond $20,000 Treasury Bill Interest $10,000 Dividends $50,000 Calebs brother repaid him a $40,000 loan from 2015 Caplital gain $30,000 Sole Proprietorship loss $50,000 Caleb found $20,000 on the beach Caleb received a $100,000 gift from his mother Caleb won a bowling contest $10,000 Caleb won $5,000 at bowling Caleb was the beneficiary of his great uncles life insurance policy $100,000 Caleb received a $40,000 legal settlement for a broken arm sustained when Caleb fell at Macys Partnership income $30,000 Contribution to health savings account $2,000 Self employment tax paid $10,000 Alimony paid $40,000. The divorce decree was signed in 2020. Contribution to qualified retirement account $1,000 Real estate taxes $20,000 State income tax $10,000 Mortgage interest $90,000, the $3,000,000 mortgage was signed in 2020. Medical Expenses $50,000 Charitable contribution to American Heart Association $20,000.

Show all of your work

II Calculate Federal Tax Liability for 2020, for the following taxpayers:

1. Keira Kennys taxable income for 2020 was $280,000. Keira files married separate.

2. Lolo Jones taxable income for 2020 was $190,000. Lolo is single.

3. Darby Douglass taxable income for 2020 was $200,000, Darby is the head of household

4. Joslyn and Joseph Jackson had taxable income of $400,000 in 2020, The Jacksons file

   married joint.

5. Sarah Smith had taxable income of $175,000 in 2020. Sarah is a surviving spouse.

Use the tax tables provided in the lecture notes to calculate the federal tax liability

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and this is the lectures

Gross Income Minus: Deductions for Adjusted Gross Income Equals: Adjusted Gross Income Minus: The greater of Standard Deduction or Total Itemized Deductions Equals: Taxable Income Calculation Of Tax Liability Based On Taxable Income.

2020 Tax Rate Schedules Individual Taxpayers

Single

If taxable income is: The tax is: Not over $9,525 Over $9,525 but not over $38,700 Over $38,700 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000

10% of taxable income $952.50, plus 12% of the excess over $9,525 $4,453.50, plus 22% of the excess over $38,700 $14,089.50, plus 24% of the excess over $82,500

$32,089.50, plus 32% of the excess over $157,500 $45,689.50, plus 35% of the excess over $200,000

$150,689.50, plus 37% of the excess over $500,00

Head of Household:

If taxable income is:

The tax is: Not over $13,600 Over $13,600 but not over $51,800 Over $51,800 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000

10% of taxable income $1,360.00, plus 12% of the excess over $13,600 $5,944.00, plus 22% of the excess over $51,800 $12,698.00, plus 24% of the excess over $82,500

$30,698.00, plus 32% of the excess over $157,500 $44,298.00, plus 35% of the excess over $200,000$149,298.00, plus 37% of the excess over $500,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

10% of taxable income $1,905.00, plus 12% of the excess over $19,050 $8,907.00, plus 22% of the excess over $77,400

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000

$91,379.00, plus 35% of the excess over $400,000 $161,379.00, plus 37% of the excess over $600,000

The tax is: Not over $9,525 Over $9,525 but not over $38,700 Over $38,700 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $300,000 Over $300,000

10% of taxable income $952.50, plus 12% of the excess over $9,525 $4,453.50, plus 22% of the excess over $38,700 $14,089.50, plus 24% of the excess over $82,500

$32,089.50, plus 32% of the excess over $157,500 $45,689.50, plus 35% of the excess over $200,000

$80,689.50, plus 37% of the excess over $300,000

Calculation of Tax Liability

If taxable income is:

The tax is: Not over $19,050 Over $19,050 but not over $77,400 Over $77,400 but not over $165,000 Over $165,000 but not over $315,000 Over $315,000 but not over $400,000 Over $400,000 but not over $600,000 Over $600,000

Calculation of Tax Liability $8,907 + ($150,000 - $77,400) x 22% = $24,879

10% of taxable income

$1,905.00, plus 12% of the excess over $19,050

$8,907.00, plus 22% of the excess over $77,400*

$28,179.00, plus 24% of the excess over $165,000 $64,179.00, plus 32% of the excess over $315,000 $91,379.00, plus 35% of the excess over $400,000

$161,379.00, plus 37% of the excess over $600,000

The tax is: Not over $13,600 Over $13,600 but not over $51,800 Over $51,800 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000

10% of taxable income $1,360.00, plus 12% of the excess over $13,600 $5,944.00, plus 22% of the excess over $51,800 $12,698.00, plus 24% of the excess over $82,500

$30,698.00, plus 32% of the excess over $157,500 $44,298.00, plus 35% of the excess over $200,000

$149,298.00, plus 37% of the excess over $500,000

Answer

$12,698 + ($120,000 - $82,500) x 24% = $21,698

ble Income Breakpoints for Preferential Rates Applicable to Adjusted Net Capital Gain (ANCG) and Qualified Dividends Pref.

Rate 0% 15% 20%

Single Up to $38,600

> $38,600 but < $425,800 Over $425,800

Filing Jointly* Head of Household

Up to $77,200 > $77,200 but < $479,000

Over $479,000

Up to $51,700 >$51,700 but < $452,400

Over $452,400

Answer

Ordinary Income Tax: $14,089 + ($150,000 - $82,500) x 24% = 30,289Single: