Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Thomas is single and a self-employed architect. During 2020, Thomas's income from his business is $170,000. He also pays $2,160 for a medical insurance policy.
Thomas is single and a self-employed architect. During 2020, Thomas's income from his business is $170,000. He also pays $2,160 for a medical insurance policy. a. How should the medical insurance policy payment be reflected on his 2020 tax return? Thomas is allowed a deduction for adjusted gross income for the cost of the policy. Feedback Check My Work The deductions for adjusted gross income that self-employed taxpayers are allowed to take for health insurance premiums self-employment taxes are designed to provide some measure of equity in the treatment of employees and self-employed individuals. b. What is his 2020 self-employment tax deduction? Round intermediate calculations and final answers to the nearest whole dollar. Thomas's self-employment tax is and his deduction for adjusted gross income is $ in 2020. Feedback Check My Work Incorrect c. Assume that Thomas's income from his business is $236,000. What is his 2020 self-employment tax deduction? Round intermediate calculations and final answers to the nearest whole dollar. Thomas's self-employment tax is $ and his deduction for adjusted gross income is $ in 2020. Feedback
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