Answered step by step
Verified Expert Solution
Link Copied!

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 image text in transcribed
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

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

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood

11th Canadian Edition

0135359708, 9780135359709

More Books

Students also viewed these Accounting questions