Jane, your college friend, is asking for your help in determining her tax refund for 2020. Jane
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Question:
Jane, your college friend, is asking for your help in determining her tax refund for 2020. Jane knows that since you are a brilliant tax student, you would help her to get back the most tax refund possible. Below are Jane financial items in 2020.
- Jane’s main source of income is from her hair salon. In 2020, her hair salon generates the total revenue of $120k.
- Jane told you that she believes her total business expenses is $80k. In that, $50k is to pay her only employee/salon manager. $3k is for supplies. $7k is for utilities. $12k is the rent. And the remaining $8k is for food. Jane told you that because the salon closes at 9 pm, they often order food and have dinner at the salon together.
- Jane completely divorced her husband in October 2019. In 2020, Jane receive the full $12k from her ex-husband.
- Jane paid her Texas property tax of $7k in 2020.
- Jane also donate $1k for the Covid-19 foundation in 2020. Through your research, you know that the foundation is a qualified public charity operating foundation.
- As a self-employed, Jane have made 4 prepayments in 2020. Her total prepayment is $12k.
- What is Jane’s filing status?
- What is Jane’s gross income?
- What is Jane’s total For AGI deduction?
- What is Jane’s total Itemized deduction?
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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