Sullivan's wife, Susan, died four years ago. Sullivan is 40 years old, has not remarried, and he maintains a home for his dependent child, Sammy, who is 10 years old. In 2019, Sullivan received $70,000 of salary from his employer and $3,000 of qualified business income from a business investment, and he paid $10,000 of itemized deductions.
Compute the following for Sullivan's 2019 tax return:
Gross income
Adjusted gross income
Taxable income
Tax liability after credits
For 2019, Gross Income of Sullivan is $70,000+$10,000=$80,000
Adjustable Gross income would be $80,000-3000=$77,000
Taxable Income=$77000-$6350(standard deduction)=$70,650
And, Tax Liability after credits is equal to $1940+12% of 51250($70650-$19400)=$8,090.
Sullivan's wife, Susan, died four years ago. Sullivan is 40 years old, has not remarried, and...
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