Jean and Tim, the parents of two children, had the following tax facts: Income: Wages:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jean and Tim, the parents of two children, had the following tax facts: Income: • Wages: $400.000 Business Income: $89,500 • 1202 Capital Gain (stock purchased in 2012): $45,000 . Interest Income: $8,500 Itemized Deductions: • 1/2 Self-Employment Tax: $1,198 • Medical Expenses: $44,000 • Casualty Loss (Federal disaster): $90,000 Housing Interest: $7,000 Investment Interest: $26,000 • Personal Interest: $4,000 aritable Contributions: $25,000 State & Local Income Taxes & Real Estate Taxes: $12,000 Other Tax Preferences: . Private Purpose Municipal Bond Income: $40,000 . Excess of Accelerated Depreciation: $12,000. General Business Credit: $8,000 . Assignment Instructions Create an Excel spreadsheet to submit your answers with two tabs. Compute both regular income tax and AMT for Jean and Tim using the information provided. Access the information in the links below as needed. MFJ TAX RATE SCHEDULE MFJ Regular Tax Rate Schedule If taxable income is over: $0 $19,750 $80,250 $171,050 $326,600 $414,700 $622,050 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Over - $0 $199,900 $199,900 but not over: MATE $19,7501 $80,250 $171,050 $326,600 $414,700 $622,050 But not over- no limit the tax is: 10% of the amount over $0 $1,975 plus 12% of the amount over $19,750 $9,235 plus 22% of the amount over $80,250 $29,211 plus 24% of the amount over $171,050 $66,543 plus 32% of the amount over $325,600 $94,735 plus 35% of the amount over $414,700 $167,308 plus 37 % of the amount over $622,050 Tentative Minimum Tax: $51,974 26% Of amount over- $0 + 28% $199,900 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Over- AMT EXEMPTION AMOUNT $114,600 $0 $199,900 But not over- Alternative Minimum Tax (AMT) Exemption Amount $199,900 $1,047,200 Tentative Minimum Tax: $51,974 + $1,505,600 26% 28% Exemption Exemption Phase-out Begins at AMTI Exemption Phase-out Complete at AMTI Exemption is phased out by 25 cents for every dollar that AMTI exceeds the threshold amount. of amount over- $0 $199,900 Jean and Tim, the parents of two children, had the following tax facts: Income: • Wages: $400.000 Business Income: $89,500 • 1202 Capital Gain (stock purchased in 2012): $45,000 . Interest Income: $8,500 Itemized Deductions: • 1/2 Self-Employment Tax: $1,198 • Medical Expenses: $44,000 • Casualty Loss (Federal disaster): $90,000 Housing Interest: $7,000 Investment Interest: $26,000 • Personal Interest: $4,000 aritable Contributions: $25,000 State & Local Income Taxes & Real Estate Taxes: $12,000 Other Tax Preferences: . Private Purpose Municipal Bond Income: $40,000 . Excess of Accelerated Depreciation: $12,000. General Business Credit: $8,000 . Assignment Instructions Create an Excel spreadsheet to submit your answers with two tabs. Compute both regular income tax and AMT for Jean and Tim using the information provided. Access the information in the links below as needed. MFJ TAX RATE SCHEDULE MFJ Regular Tax Rate Schedule If taxable income is over: $0 $19,750 $80,250 $171,050 $326,600 $414,700 $622,050 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Over - $0 $199,900 $199,900 but not over: MATE $19,7501 $80,250 $171,050 $326,600 $414,700 $622,050 But not over- no limit the tax is: 10% of the amount over $0 $1,975 plus 12% of the amount over $19,750 $9,235 plus 22% of the amount over $80,250 $29,211 plus 24% of the amount over $171,050 $66,543 plus 32% of the amount over $325,600 $94,735 plus 35% of the amount over $414,700 $167,308 plus 37 % of the amount over $622,050 Tentative Minimum Tax: $51,974 26% Of amount over- $0 + 28% $199,900 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Over- AMT EXEMPTION AMOUNT $114,600 $0 $199,900 But not over- Alternative Minimum Tax (AMT) Exemption Amount $199,900 $1,047,200 Tentative Minimum Tax: $51,974 + $1,505,600 26% 28% Exemption Exemption Phase-out Begins at AMTI Exemption Phase-out Complete at AMTI Exemption is phased out by 25 cents for every dollar that AMTI exceeds the threshold amount. of amount over- $0 $199,900
Expert Answer:
Answer rating: 100% (QA)
Excel Spreadsheet for Jean and Tims Tax Calculation Heres the Excel spreadsheet with two tabs as req... 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:
Students also viewed these finance questions
-
Create an Excel spreadsheet to produce a chart similar to Figure 11.5 showing samples from a bivariate Students t-distribution with four degrees of freedom where the correlation is 0.5. Next suppose...
-
Two plates are joined by two side corner welds. The length of one side weld is Lw=50 mm and the thickness of plate is s-7mm. Take Yield strength= 295 N/mm; Take shear strength= 0.5770 yield, factor...
-
Create an Excel spreadsheet that graphs the portfolio return and standard deviation combinations found in Problem for Home Depot and Lowes. In problem Use the table of annual returns in Problem for...
-
client with celiac disease asks for a nutrition plan, what should the trainer recommend? Refer to a dietician 3-day food log to prescribe meal plan A templated meal plan Give a breakdown of...
-
Multiple Choice Questions: 1. An explicit cost a. Is an opportunity cost. b. Is an out-of-pocket expense. c. Does not require an outlay of money. d. Is characterized by both a and b. e. Is...
-
When cyclohexanone is treated with H 2 O, an equilibrium is established between cyclohexanone and its hydrate. This equilibrium greatly favors the ketone, and only trace amounts of the hydrate can be...
-
Deanna Golds started an interior design company called Interiors by Deanna, Inc., on November 1,2010. The following amounts summarize the financial position of her business on November 14, 2010,...
-
Rachel Timber Inc., a small private company that follows Canadian ASPE, owns 9,000 hectares of timberland purchased in 2001 at a cost of $1,400 per hectare. At the time of purchase, the land without...
-
NOTE FOR TUTOR: PLEASE FILL IN EXCEL LIKE THE ONE ATTACHED AND ALSO PREPARE LOAN REPAYMENT SCHEDULE! THANK YOU! QUESTION 2 Burt deposits $10,000 into a bank account today. The account earns 4.5% per...
-
Fourth-Sixth-Twelfth Bank currently pays an annuall dividend of $1.40 per share. After extensive analysis, you forecast that the Bank's stock will continue to pay the $1.40 dividend for four years....
-
A grocer purchased 25.6 kg of sugar at Rs. 12.50 per kg and mixed it with 12 kg sugar at Rs. 15 per kg. At what rate should he sell the mixture to gain 12.8 %? 1. Rs. 17 per kg 2. Rs. 15.0 per kg 3....
-
Stevenson Company's trial balance as of December 31, 2022 shows \($35,000\) for inventory; but the balance sheet shows \($33,000.\) Assuming no inventory shrinkage, what is the most likely reason for...
-
Assume an employee earns $900 per day and accrues one sick leave each month. Make the journal entry necessary at the end of the quarter to record the accrual of the sick leaves during the quarter.
-
On June 24, 2022, Reed Company sold merchandise to Emily Clark for \( 75,000\). On June 30, Clark paid \( 40,000\). Assuming that Reed uses the perpetual inventory system, record the necessary...
-
Joyce Company adopts a defined benefit plan for its employees as a post-retirement benefit. According to the plan and the actuarial assumptions, the pension expense is NT\($200,000,\) and Joyce only...
-
Gordon Inc. adopts a defined contribution pension plan, which requires Gordon Inc. to contribute NT$250,000 for February 2022. Prepare a journal entry for the payment.
-
A portfolio exists that contains equal weights of Five securities: A stock with a beta of 1.5, B stock with a beta of 2.0, C stock with a beta of -0.8, Dis a US Treasury Bond, and E is a security...
-
(a) What is the focal length of a magnifying glass that gives an angular magnification of 8.0 when the image is at infinity? (b) How far must the object be from the lens?
-
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $4,000. Total real estate taxes for the home are $950, and...
-
In 2012, Michael has net short-term capital losses of $2,000, a net long-term capital loss of $45,000, and other ordinary taxable income of $45,000. a. Calculate the amount of Michael's deduction for...
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
What are the advantages of resource leveling?
-
Which of the following statements is false? A. The highest need in Maslows pyramid is called selfactualization. B. Most people today prefer managers who follow Theory X versus Theory Y. C. Herzberg...
-
Some project managers like to assess team performance by using a technique known as MBWA, which stands for _______________. A. management by wondering aloud B. management by wandering around C....
Study smarter with the SolutionInn App