Bernie and Becky are under age 65, file jointly and have 2 children, Vinnie, who is...

Transcribed Image Text:

Bernie and Becky are under age 65, file jointly and have 2 children, Vinnie, who is a college senior (age 24) and Veronica who is in middle school (age 12). They have the following income: Salary-Bernie - Federal Income Tax withheld = $50,000 Dividends from IBM stock Interest Income from NJ Bonds Gambling winnings Self Employed Consultant - Becky: Gross receipts Deductible Business Expenses Self-Employment Tax Contribution to self-employed retirement plan Alimony & child care paid by Bernie to former wife who he divorced in 2015 Suprof (50% for ex-wife and 50% for child) Monmouth University tuition paid for Vinnie Their personal deductions include: State Income Tax Real Estate Tax on their home Sales Tax on purchases during year including a boat Mortgage Interest on personal residence (balance = $800,000 borrowed in 2018) Charitable Contributions - Cash Non-cash-50 shares of IBM valued at $100 per share at date of gift Tax Preparation Fees Unreimbursed Employee business expenses in connection with Joe's job Investment Management fees Losses from gambling Compute Bernie and Becky's Federal Income Tax for 2021 $175,000 10,000 5,000 20,000 253,801 200,000 7,602 8,000 24,000 50,000 15,000 17,000 17,000 32,000 6,000 P 2,200 2,000 10,000 10,000 You are encouraged to work in groups. You are allowed to use software and/or consult your favorite CPA or other tax person. Solution can be submitted on plain paper or IRS forms. Extra credit for use of EXCEL · 270 ihn Bernie and Becky are under age 65, file jointly and have 2 children, Vinnie, who is a college senior (age 24) and Veronica who is in middle school (age 12). They have the following income: Salary-Bernie - Federal Income Tax withheld = $50,000 Dividends from IBM stock Interest Income from NJ Bonds Gambling winnings Self Employed Consultant - Becky: Gross receipts Deductible Business Expenses Self-Employment Tax Contribution to self-employed retirement plan Alimony & child care paid by Bernie to former wife who he divorced in 2015 Suprof (50% for ex-wife and 50% for child) Monmouth University tuition paid for Vinnie Their personal deductions include: State Income Tax Real Estate Tax on their home Sales Tax on purchases during year including a boat Mortgage Interest on personal residence (balance = $800,000 borrowed in 2018) Charitable Contributions - Cash Non-cash-50 shares of IBM valued at $100 per share at date of gift Tax Preparation Fees Unreimbursed Employee business expenses in connection with Joe's job Investment Management fees Losses from gambling Compute Bernie and Becky's Federal Income Tax for 2021 $175,000 10,000 5,000 20,000 253,801 200,000 7,602 8,000 24,000 50,000 15,000 17,000 17,000 32,000 6,000 P 2,200 2,000 10,000 10,000 You are encouraged to work in groups. You are allowed to use software and/or consult your favorite CPA or other tax person. Solution can be submitted on plain paper or IRS forms. Extra credit for use of EXCEL · 270 ihn

Answer rating: 100% (QA)

Bernie and Beckys federal income tax for 2021 is 58568 This amou... View the full answer