What is the taxable income?
What is fhe ultimate tax liability?
Clarke and Ellen Griswold got married eight years ago and have a seven-year-old daughter, Audrey. In 2020, Clarek worked as a computer technician at a local university earning a salary of $152,000, and Ellen worked part time as a receptionist for a law firm earning a salary of $29,000. Clarke also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Griswolds received $800 in qualified dividends and a $200 refund of their state income taxes. The Griswolds always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Griswolds had qualifying insurance for purposes of the Affordable Care Act (ACA). The Griswolds reported making the following payments during the year: State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to Clarke's former wife of $10,000 (divorced in 2014) $12,200 of real property taxes. $3,600 to Kid Care day care center for Audrey's care while Clarke and Ellen worked. $14,000 interest on their home mortgage (S400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000. Please determine the Griswolds taxable income and ultimate tax liability. (Show your work). Clarke and Ellen Griswold got married eight years ago and have a seven-year-old daughter, Audrey. In 2020, Clarek worked as a computer technician at a local university earning a salary of $152,000, and Ellen worked part time as a receptionist for a law firm earning a salary of $29,000. Clarke also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Griswolds received $800 in qualified dividends and a $200 refund of their state income taxes. The Griswolds always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Griswolds had qualifying insurance for purposes of the Affordable Care Act (ACA). The Griswolds reported making the following payments during the year: State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to Clarke's former wife of $10,000 (divorced in 2014) $12,200 of real property taxes. $3,600 to Kid Care day care center for Audrey's care while Clarke and Ellen worked. $14,000 interest on their home mortgage (S400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000. Please determine the Griswolds taxable income and ultimate tax liability. (Show your work)
