United State Tax Law

Jason and Katherine Minnow filed a joint return for 2021. Jason earned 300.000 from working at Four Square, Inc. He died on Jan. 3. 2021. He also earned $90,000 from a business he owned which had $35,000 in business expenses. Katherine received $900.000 from a life insurance policy on Jason. Katherine also ran a business which had $50,000 in income and $60,000 in expenses. They incurred 15,000 in itemized deductions during the year. Ignore QBI deduction. Assume Jason's employer has withheld the required $900 in additional Medicare (he has over $200,000 in income). You will need to figure out how much additional Medicare they actually owe to see how much of a refund they get. Also assume that the limit for social security (cap is $142.800) was accounted for in Jason's wages. This will affect Jason's self employment taxes. Show all your work. What is the gross income? (5 points) What is the adjusted income? (5 points) What is their total taxable income? (5 points) What are their self-employment taxes? (5 points) What is the total tax due (refund) using the Tax Rate schedule? Assume Jason had $17,000 deducted from his pay. (10 points) Jason and Katherine Minnow filed a joint return for 2021. Jason earned 300.000 from working at Four Square, Inc. He died on Jan. 3. 2021. He also earned $90,000 from a business he owned which had $35,000 in business expenses. Katherine received $900.000 from a life insurance policy on Jason. Katherine also ran a business which had $50,000 in income and $60,000 in expenses. They incurred 15,000 in itemized deductions during the year. Ignore QBI deduction. Assume Jason's employer has withheld the required $900 in additional Medicare (he has over $200,000 in income). You will need to figure out how much additional Medicare they actually owe to see how much of a refund they get. Also assume that the limit for social security (cap is $142.800) was accounted for in Jason's wages. This will affect Jason's self employment taxes. Show all your work. What is the gross income? (5 points) What is the adjusted income? (5 points) What is their total taxable income? (5 points) What are their self-employment taxes? (5 points) What is the total tax due (refund) using the Tax Rate schedule? Assume Jason had $17,000 deducted from his pay. (10 points)