Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What are Beth's total tax credits Beth is anticipating significant changes in her life in 2020, and she has asked you to estimate her taxable
What are Beth's total tax credits Beth is anticipating significant changes in her life in 2020, and she has asked you to estimate her taxable income and tax liability for 2020. Beth just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2020 and that she will incur approximately $2,000 of adoption expenses. In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (1.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments. in your computations, assume that all other 2020 income and expenses will be the same as 2019 amounts. There no personal or dependency exemptions allowed in 2020. Medical deductions are subject to a 7.5% reduction of AGI in 2020. Beth's rate for the child an dependent care credit Is 20% and she is entitled to the full child tax credit and adoption credit as well
What are Beth's total tax credits
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