Homework Answers
Answer -
Step - (1) -
Computation of Jennifer’s Taxable Income
| Particulars | Explanation | Amount ($) | |
| I. | Salary | Given in question | 76300 |
| II. | Interest income | Given in question | 5200 |
| III. | Dividend income | Given in question | 9400 |
| IV. | Net long-term capital gain | Long-term capital gain is not taxable, because short-term capital loss ($14200) exceeds the long-term capital gain ($9900) | 0 |
| V. | Gross income | I + II + III + IV | 90900 |
| VI. | Deductions for AGI | $3100 [Given in question] + $3000 of net short-term capital loss is allowed to deduct against ordinary income as per U.S. Internal Revenue Service | 6100 |
| VII. | Adjusted gross income | V - VI | 84800 |
| VIII. | Standard deduction | Given in question | 12000 |
| IX. | Itemized deductions | Deductions from AGI [Given in question] | 14800 |
| X. | Greater of standard deduction or itemized deductions | Greater of: (VIII) or (IX) | 14800 |
| Jennifer’s Taxable Income | VII - X | 70000 | |
.
Step - (2) -
Computation of Jennifer’s Income Tax Liability for Tax Year 2019
Ordinary taxable income = Total taxable income - Dividend income = $70000 - 9400 = $60600.
| Tax Rate | Taxable Income ($) | Calculation | Amount ($) | |
| I. | 10% | 0 - 9700 | $9700 * 10% | 970 |
| II. | 12% | 9700 - 39475 | ($39475 - $9700) * 12% | 3573 |
| III. | 22% | 39475 - 84200 | ($60600 - $39475) * 22% | 4648 |
| Income tax on ordinary income | I + II + III | 9191 | ||
| Add: Income tax on dividend income | $9400 * 15% | 1410 | ||
| Jennifer’s Income Tax Liability | $9191 + $1410 | 10601 | ||
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Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
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Ch 03: Assignment...
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Capital Gains and Losses (LO. 5) Jennifer is single and has the following income and expenses: Salary Interest income Dividend income Long-term capital gain Short-term capital loss Deductions for AGI $75,100 5,200 8,800 10,400 14,800 3,500 14,600 Deductions from AGI The standard deduction is $12,000 for single taxpayers. Dividends and met long-term capital gains are taxed at a rate of 15 Refer to the Tax schedules table to answer the following question. Round Intermediate calculations and final answers to the...
Possible Options:
Adjusted gross income
Adjustments
Capital gains tax categories
Deductions
Exemption
Itemized deduction
Standard Deduction
Steps to AGI
Steps to taxable income
4. Vocabulary - Terminology for components of taxable income Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the right with the descriptions of the terms on the left. (Note: These are not necessarily complete definitions, but there is only one possible answer for each term.) Description...
Hollace is single and has the following to complete her taxes. Use the the following to complete her taxes. Use the 2019 Marginal Tax Schedules to calculate the tax as appropriate. Please show your work. You may use your 2019, tax form as a reference. FACTS Salary $ 81,000 Regular Interest Income $ 5,500 Long-Term capital gain $ 11,000 Short-Term capital loss $ 12,000 udried Dividend Income S 6.500 INote Only Oualified Dividends are taxed at 15%6) Regular at ordinary...
Achoices: Total tax liability owed, Adjusted gross income (AGI),
Gross income (all income subject to income taxes]
Bchoices: Total personal exemptions, (AGI), Adjustments to
(gross) income
Cchoices: Total tax liability owed, Itemized deductions,
(AGI)
Dchoices: Taxable income Total personal exemptions Total tax
liability owed
E: Taxable income (AGI) Other taxes
F: Other taxes Total personal exemptions Tax credits
G: Tax credits Other credits Tax liability owed
H: Taxable income Total tax liability owed Adjestments to
(gross) income
Ch 03: Assignment...
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