Answered step by step
Verified Expert Solution
Question
1 Approved Answer
total income? adjusted gross income? taxable income? tax liability? amount of federal income tax due? Barbara Perry lives at 5432 Tampa Road, Allentown, Pennsylvania 19009.
total income? adjusted gross income? taxable income? tax liability? amount of federal income tax due?
Barbara Perry lives at 5432 Tampa Road, Allentown, Pennsylvania 19009. She is a tax accountant with Blue Mountain Manufacturing Company, 3021 Eastern Street, Allentown, Pennsylvania 19093 (employer identification number 38-4128877). She also writes computer software programs for tax practitioners and has a part-time tax practice. Barbara is single and has no dependents. Barbara's birthday is July 4, 1971, and her Social Security number is 123 44-5678. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Barbara's Wage and Tax Statement (Form W-2) For 2022 During 2022, Barbara received interest of $1,300 from Miami Savings and Loan and $400 from Sun Coast Bank. Each financial institution reported the interest income on Form 1099-INT. She received qualified dividends of $800 from Red Corporation, $750 from White Corporation, and $650 from Blue Corporation. Each corporation reported Barbara's dividend payments on Form 1099-DIV. Barbara received a \$1,100 income tax refund from the State of Pennsylvania on May 12, 2022. On her 2021 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer. Fees earned from her part-time tax practice in 2022 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 1, 2022, Barbara bought 500 shares of Gray Corporation common stock for $17.60 a share. On July 16,2022 , Barbara sold the stock for $14 a share. Barbara bought a used sports utility vehicle for $6,000 on June 5,2022 . She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November, 2, 2022, she sold the vehicle to a friend for 6,500 . On January 2, 2022, Barbara acquired 100 shares of White Corporation common stock for $30 a share. She sold the stock on December 19,2022 for $55 a share. During 2022, Barbara received royalties of $16,000 on a software program she had written. Barbara incurred the following expenditures in connection with her software-writing activities: Barbara elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provision2s of Section 179. The equipment and furniture were placed in service on January 15, 2022. Although her employer suggested that Barbara attend a convention on current developments in corporate taxation, Barbara was not reimbursed for the travel expenses of $1,420 which she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During 2022, Barbara paid $300 for prescription medicine and $2,875 in doctor bills, hospital bills, and medical insurance premiums. Barbara paid real property taxes of $1,766 on her home. Interest on her home mortgage was $3,845, and interest to credit card companies was $320. Barbara contributed $30 each week to her church and $10 each week to the United Way. Professional dues and subscriptions totaled $350. Barbara maintained her sales tax receipts. The total is $1,954. Barbara paid estimated taxes of $1,000
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