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Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (2021 and 2022), Trevor expects to report salary of $112,000, contribute $8,250 to charity, and pay $3,600 in state income taxes. Required: a. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction for both years. b. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of 2021. Estimate Trevor's taxable income for each of the next two years using the 2021 amounts for the standard deduction. c. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,600 and $34,000, respectively, each year. Estimate Trevor's taxable income for each of the next two years (2021 and 2022) using the 2021 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,250 and state tax payments of $3,600 in each year. d. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,600 and $34,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. Complete this question by entering your answers in the tabs below. Req A Req B Req C Req D Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,600 and $34,000, respectively, each year. Assume that Trevor makes the charitable contribution for 2022 and pays the real estate taxes for 2022 in December of 2021. Estimate Trevor's taxable income for 2021 and 2022 using the 2021 amounts for the standard deduction. (Amounts to be deducted should be indicated with a minus sign.) Salary Itemized deductions Standard deduction Taxable income Total taxable income for the two years < Req C 2021 2022 $ 0 $ Req D > Show less
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