Angel and Nara are married filing jointly with three children all under the age of 13. Angel
Question:
Angel and Nara are married filing jointly with three children all under the age of 13. Angel is a stay-at-home dad while Nara is an engineer for a local consulting firm. Angel shops online to get the best prices on items to support the family and purchased $18,744 of items each above $1,000 and $487 of items each below $1,000 from out of state retailers. They live in a sales tax rate area of 7.75% and paid $2 of sales and use tax to other states. The couple prefers to apply 100% of any refund to next year’s tax liability. This year’s Form 540 had the following amounts.
Adjusted gross income $164,317
Total tax $ 10,113
Total payments $ 8,092
What is the amount that will be “Applied to Next Year” reported on Form 540, line 95?
a.$0
b.$3,506
c.$6,607
d.$8,165
What is the amount of “Overpaid Tax Available this Year” reported on Form 540, line 96?
a.$0
b.$3,506
c.$6,607
d.$8,165
What is the amount of “Tax Due” reported on Form 540, line 97?
a.$0
b.$3,506
c.$6,607
d.$8,165
Expert Answer:
