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TPC 1 4 - 0 2 ( Static ) [ LO 1 4 - 3 ] Assume that the tax law allows individuals to claim

TPC 14-02(Static)[LO 14-3]
Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of his family. Instead of this deduction, individuals may claim the first $1,000 of the cost as a nonrefundable tax credit (no carryforward or carryback of any excess credit). In each of the following situations, advise the taxpayer as to whether she should take the deduction or credit. In each situation the taxpayer is single. Assume the taxable year is 2023. Use Individual Tax Rate Schedules and Standard Deduction Table.
Compute Ms. Omars additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $225,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $13,200 itemized deductions.
Individual Tax Rate Schedules
Married Filing Jointly and Surviving Spouse
If taxable income is The tax is
Not over $22,00010% of taxable income
Over $22,000 but not over $89,450 $2,200.00+12% of excess over $22,000
Over $89,450 but not over $190,750 $10,294.00+22% of excess over $89,450
Over $190,750 but not over $364,200 $32,580.00+24% of excess over $190,750
Over $364,200 but not over $462,500 $74,208.00+32% of excess over $364,200
Over $462,500 but not over $693,750 $105,664.00+35% of excess over $462,500
Over $693,750 $186,601.50+37% of excess over $693,750
Married Filing Separately
If taxable income is The tax is
Not over $11,00010% of taxable income
Over $11,000 but not over $44,725 $1,100.00+12% of excess over $11,000
Over $44,725 but not over $95,375 $5,147.00+22% of excess over $44,725
Over $95,375 but not over $182,100 $16,290.00+24% of excess over $95,375
Over $182,100 but not over $231,250 $37,104.00+32% of excess over $182,100
Over $231,250 but not over $346,875 $52,832.00+35% of excess over $231,250
Over $346,875 $93,300.75+37% of excess over $346,875
Head of Household
If taxable income is The tax is
Not over $15,70010% of taxable income
Over $15,700 but not over $59,850 $1,570.00+12% of excess over $15,700
Over $59,850 but not over $95,350 $6,868.00+22% of excess over $59,850
Over $95,350 but not over $182,100 $14,678.00+24% of excess over $95,350
Over $182,100 but not over $231,250 $35,498.00+32% of excess over $182,100
Over $231,250 but not over $578,100 $51,226.00+35% of excess over $231,250
Over $578,100 $172,623.50+37% of excess over $578,100
Single
If taxable income is The tax is
Not over $11,00010% of taxable income
Over $11,000 but not over $44,725 $1,100.00+12% of excess over $11,000
Over $44,725 but not over $95,375 $5,147.00+22% of excess over $44,725
Over $95,375 but not over $182,100 $16,290.00+24% of excess over $95,375
Over $182,100 but not over $231,250 $37,104.00+32% of excess over $182,100
Over $231,250 but not over $578,125 $52,832.00+35% of excess over $231,250
Over $578,125 $174,238.25+37% of excess over $578,125
Married filing jointly and surviving spouses $27,700
Married filing separately 13,850
Head of household 20,800
Single 13,850

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