Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Valerie is a cash-basis, calendar-year taxpayer. Her salary is $93,000, and she is single. She plans to purchase a residence in 2022 . She antiopates

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Valerie is a cash-basis, calendar-year taxpayer. Her salary is $93,000, and she is single. She plans to purchase a residence in 2022 . She antiopates her property taxes and inserest wal totai $7,4c0 Each year, Valerie contributes approximately $3,500 to charity. Her other itemized deductions total approximately $3,400 for each year. For purposes of this problem, assurse that 2022 tax raliss ane standard deductions are the same as for 2021. (Click the icon to view the standard deduction amounts.) (Click the ican to view the 2021 tax rate schedule for the Single filing status.) Read the reguirements. Requirement a. What will her gross tax be in 2021 and 2022 if she contributes $3,500 to chantly in each year? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (Use the 2021 tax rase schedule for at tax calculabone Do not round intimediary calculanions. Oriy round the amount you input in the cell to the nearast dellar.) Valerie is a cash-basis, calendaryear taxpayer. Her salary is $93,000, and she is single. She plans to purchase a residence in 2022 . She anticipates her property taxes and interest will sotal $7,400. Each year, Valerie contributes approximately $3,500 to charity. Her other itemized deductions total approximately $3,400 for each year. For purposes of this problem, assume that 2022 tax rafas and ntandard deductions are the same as for 2021. (Cilck the icon to view the standard deducton amouints.) (Cick the icon to view the 2021 tax rale schedule for the Single fing status.) Fend the regulrements : Requirement b. What will her gross tax be in 2021 and 2022 if she contributes $7.000 to charity in 2021 but makes no contribution in 20222?. Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year, (Uhe the 2021 tax rase schedule for an tax calculations. Do not round insemedtary calculatione. Only round the amount you input in the cell to the nearest dollar) Requirement c. What will hor gross tax be in 2021 and 2022 i she makes no contribution in 2021 but contricetes $7,000 in 2022? Valerie is a cash-basis, calendar-year taxpayer. Her salary is $93,000, and she is single. She plans to purchase a residence in 2022 . She anticipates her propery thres and intorest wal tota $7,400 : Each year, Valerie contributes approximately $3,500 to charity. Her other itemized deductions total approximately $3,400 for each year. Fox purposes of this problem, assume that 2022 tak rates and standard deductions aro the same as for 2021. (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Single filing status.) Read the reguirements. Requirement c. What will her gross tax be in 2021 and 2022 if she makes no contribution in 2021 but contributes $7,000 in 2022? enter a zero. Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the ameant you incut in the oell to the ciareat dolari) Requirement d. Aternasive c resuits in a lower tax than either a of b. Why? Valerie is a cash-basis, calendar-year taxpayer. Her salary is $93.000, and she is singlo, She plans to purchase a readence in 2022 She anfipates her propentr tares and interest we total \$7. 400. Each year, Valerie contributes approximately $3,500 to charily. Her other iterrized deductions total approximately 33,400 for each year, For purpeses of tis pectlem, astume tat 2022 tax ration ind standard deductions are the same as for 2021. (Click the icon to view the standard deduction amounts.) (Cick the icon to view the 2021 tax rate schedule for the Single filing status.) Read the neguiremants: Requirement d. Alternative c results in a lower tax than either a or b. Why? A. By contributing the $7,000 in 2022, Valerie is able to deduct the standard deguction in 2021 and 2022 . This results in a lower tax for 2021 and 2002 . B. By contributing the $7,000 in 2021 , Valerie is able to deduct the entire amount in 2021. This resuls in a lower tax since her incoene is taxed at a hightser tax rale in 2021 . C. By conitributing the $7,000 in 2022 . Valerie is able to deduct the entre amount. Fi $3,500 is contribused in each yoar, only the $3,500 contrbuind in 2022 is deductible. No tax benet ia received in 2021 because the contribution is less than the standard deduction. If $7,000 is cortributed in 202t then no tax benefit is recenived. D. By contributing the $7,000 in 2021 . Valerie is abla to deduct the antite amount: If $3,500 is contributed in each yeat, only the $3,500 contrbuted in 2021 is deductible. No tax benefi is received in 2022 because the contribution is less than the propecty taxes and interest deduction. if $7,000 is contricuted in 2022 then no tar beneft is received Reference Reference

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Quality Auditor Handbook

Authors: Lance B Coleman

5th Edition

1951058097, 978-1951058098

More Books

Students also viewed these Accounting questions

Question

Describe the three parts of developing a new habit.

Answered: 1 week ago