Charishma and Daniel are married taxpayers, with no children or other dependents. They have the following...
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Charishma and Daniel are married taxpayers, with no children or other dependents. They have the following sources of income: Charishma's salary Daniel's salary Interest income-- County of Erie bond Corporate bond fund U.S. Treasury Bills Dividends from US publicly traded stocks (All are qualified dividends) Distribution from S-Corp stock (Total S-Corp taxable income = 180,000; they have 10% ownership)¹ Gain on sale of stock (bought 3 months ago) Loss on sale of bond (bought 3 years ago) They paid the following itemized deductions: Home mortgage interest Home property taxes State income taxes withheld from salaries Charitable contributions 200,000 150,000 1 They are investors in the S corp. They do not work in the business. 9,000 5,000 2,000 12,000 16,000 21,000 (7,000) 6,000 7,000 17,000 7,000 Calculate their 2022 federal income tax liability (hint-consider any additional federal income- related taxes they may need to pay in addition to the regular income tax). Use the template posted. 1 2 Earned Income 3 Wife's salary 4 Husband's salary 5 Salary--total 6 Investment Income 7 Interest income--total 8 Municipal bond 9 10 11 Dividends from US publicly-traded stocks 12 Distribution from S Corp Taxable income share from S Corp (Total S Corp TI = 180,000; 13 they own 10% stock) 14 Gain/loss on sale of stock 15 Gain/loss on sale of bond 16 Net gain/loss 17 Gross Income Corporate bond fund US T-Bills 18 Deductions For AGI 19 AGI 20 Home mortgage interest 21 Home property taxes 22 State income taxes withheld from salaries 23 Charitable contributions 24 Itemized Deductions total 25 Standard Deductions for MFJ status 26 Deductions From AGI 27 Taxable Income 28 29 Federal Income Tax Computation 30 Dividends 15% 31 NLTCG 15% 32 Balance at ordinary rate 33 34 345 Regular Federal Income Tax 36 Additional Medicare Taxes on Excess Earned Income .9% 37 NIIT 3.8% x the lesser of invest income or (AGI-250,000) 38 Additional Taxes on High Income 39 40 Total Federal Tax Liability 41 Supporting Details T Amount on Return Charishma and Daniel are married taxpayers, with no children or other dependents. They have the following sources of income: Charishma's salary Daniel's salary Interest income-- County of Erie bond Corporate bond fund U.S. Treasury Bills Dividends from US publicly traded stocks (All are qualified dividends) Distribution from S-Corp stock (Total S-Corp taxable income = 180,000; they have 10% ownership)¹ Gain on sale of stock (bought 3 months ago) Loss on sale of bond (bought 3 years ago) They paid the following itemized deductions: Home mortgage interest Home property taxes State income taxes withheld from salaries Charitable contributions 200,000 150,000 1 They are investors in the S corp. They do not work in the business. 9,000 5,000 2,000 12,000 16,000 21,000 (7,000) 6,000 7,000 17,000 7,000 Calculate their 2022 federal income tax liability (hint-consider any additional federal income- related taxes they may need to pay in addition to the regular income tax). Use the template posted. 1 2 Earned Income 3 Wife's salary 4 Husband's salary 5 Salary--total 6 Investment Income 7 Interest income--total 8 Municipal bond 9 10 11 Dividends from US publicly-traded stocks 12 Distribution from S Corp Taxable income share from S Corp (Total S Corp TI = 180,000; 13 they own 10% stock) 14 Gain/loss on sale of stock 15 Gain/loss on sale of bond 16 Net gain/loss 17 Gross Income Corporate bond fund US T-Bills 18 Deductions For AGI 19 AGI 20 Home mortgage interest 21 Home property taxes 22 State income taxes withheld from salaries 23 Charitable contributions 24 Itemized Deductions total 25 Standard Deductions for MFJ status 26 Deductions From AGI 27 Taxable Income 28 29 Federal Income Tax Computation 30 Dividends 15% 31 NLTCG 15% 32 Balance at ordinary rate 33 34 345 Regular Federal Income Tax 36 Additional Medicare Taxes on Excess Earned Income .9% 37 NIIT 3.8% x the lesser of invest income or (AGI-250,000) 38 Additional Taxes on High Income 39 40 Total Federal Tax Liability 41 Supporting Details T Amount on Return
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To calculate Charishma and Daniels 2022 federal income tax liability well go through the various income sources deductions and applicable tax rates well break down the calculation step by step using t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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