Blake and Valerie Meyer (both age 30) are married with one dependent child (age
ID: 2395614 • Letter: B
Question
Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5) . Blake's gross salury fhom his corporate employer weas $oooo, ad Setion 401g comribumtion wes $6.300. . Valerie's salary from GuiTech, an S corporation, was $29,400 stock Her pro rata share of GuiTech's ordinary business income was $13,790, her pro rata share of GuiTech's net loss from rental real estate was $8.100, and she received a $12,000 cash distribution from GuiTech . Blake . Valerie won $6.400 in the Maryland state lottery a $12,000 cash gift from his grandmother received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a erm capital gain. $3,020 I . Blake paid $12,000 alimony to a former spouse. . The Meyers paid $14,200 home mortgage interest on acquisition debt and $2780 property tax on their personal residence. . The Meyers paid $7000 state income tax and $4 200 state and local sales tax . Valerie contributed $1,945 to the First Baptist Church. t taxable year is 2017 Use Individual tax rate schedules and Standard deduction table (Do not round Intermedlate calculations. Round your final answers to the nearest whole dollar amount.) 8 Answer is complete but not entirely correct 98,922 50,297 Taxable income 6.442 03 80,777 AMTExplanation / Answer
Adjusted gross income:
Taxable income:
Tax:
Taxable income of taxapayer of $58,847 is in 15% tax bracket, hence, qualified dividends(712) and long term capital gains (3020) are taxed at 0% and the balance income of 55,115 is taxed at regular rates.
Tax = (55115 - 18650) * 15% +1865 = 7335
AMT is not applicable as AMTI is with in threshold applicable
Total tax liability = 7335
Sl no Particulars Amount Amount Gross income: 7 Wages 93,100 8a Interest - 8b Interest E - 9a Dividends - 712 9b Dividends Q 712 10 Taxable refunds 11 Alimony 12 Business Sch C - 13 Capital gains Sch D 3,020 14 Other gain F4797 15a,b IRA - Gross, taxable 16a,b Pension gross, taxable 17 Passive income Sch E 5,690 18 Farm income Sch F 19 Unemployment 20a,b Social security gross, taxable 21 Other income List 6,400 22 Total income 1,08,922 Deductions to AGI: 23 Educator expenses 24 Business exp 25 HSA 8889 26 Moving 3903 - 27 SE tax - 28 SEP SIMPLE qualified plans 29 SE health insurance 30 Penalty early with savings 31 Alimony paid 12,000 32 IRA contributions - 33 Student loan interest - 34 Tuition fee 8917 35 Domostic production 8903 36 Total deductions 12,000 37, 38 AGI 96,922Related Questions
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