Question

! Required information (The following information applies to the questions displayed below.) Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,000. Meg works part time at the same university. She earns $33,000 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks).( Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.) b. What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year? Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses $ 1,500 0 13,000 (10,000) Total tax liability $ 8,929

Answer 1

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Solution: As per Tax year 2020 rules, answer may be different for different year: Answer is highlighted in yellow: b) Particulars Amount Salaries (68000+33000) 101000 Short term capital gain, net (1500-0) $ 1,500 Long term capital gain, net (13000-10000) $ 3,000 Adjusted Gross Income 105500 Less: Standard deduction 24,800 Taxable income $ 80,700 Less: Preferential taxed income $ 3,000 Income taxed at ordinary rates $ 77,700 Income taxed at Capital gain rate $ 3,000 Regular tax (1975)+(77700-19750) *12% $ 8,929 Preferential tax [(80000-77700) - (3000)]*15% 105 Tax Liability $ 9,034 $ F