Question

is problem is for the 2018 tax year. Alfred E. Old and Beulah A. Crane, each age 12, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted old as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304 Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes Sarah's Social Security number is 123-45-6788. Alfred's salary for 2018 is $150,000. He is an executive working for Cherry, Inc. (Federal LD. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal LD. No. 11-1111111), as a public defender, She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. Alfred and Beulah receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign Required: Compute the Olds' net tax payable (or refund due) for 2018. Use Form 1040 and Schedule 1 to complete this tax return. Check My Work 3 more Check My Work uses remaining Email instruct All work saved. ignment Score: 0.0% o BBW e m9 have to search

Answer 1

Soution- each age 42, Alfred E. old and Beulah A. Crane, Mayried on Sep 1, 2016. Alfred's Social Security number is. 111-11.-112 Beulan's Social Security number is. refund due tor 2018 Alfred ů Beulon's net tax Particolays Amoont Amount $ 192,000 $ 300 $ 500 Gross income i → Satary [ $ 150,000 + $ 42,000'] - life insurance dividends → State fax Refund - Total Deductions for adjusted Gross income Alimony paid $1,900 $ 194,500 ( $15,000) $199.900 income Adiosted gross

Itemized dedoctions : $ 10,400 $ 2,400 --> Stale income taxes 8.000+2,400) → Cash Contributions → home mortgage interest > Real estate taxes $ ,500 $ 1,450 18,750 18.750 7.800 $ 153,150 Personal & dependency expenses .(3900 x2) Tax income Tax on income Less - Tax withheld. [ 24.900+7,500) Net tax payable 32, 400 $6863 Ταχ on faceae income - Taxable $ 153,150 500 dividends - Tax on income t 153,150 +500 $153,650

income tax on $153,650 is at 22% Ordinary income tax - 8907 + (153, 650 - 77000)x 22%. => 8907 + (76,250 ) * 229. :--) 8907 + 16,775 = 25,682 :: ordinary income tax : $ 25,682. Qualified dividend.. dividend : 500 taxed at 15%. ) 500 x 15%. => 75 = $ 25,682 + $75 Total tax .$ 25,757