Jean and Tim, the parents of two children, had the following tax facts: Income: Wages:...

 

  

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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

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Excel Spreadsheet for Jean and Tims Tax Calculation Heres the Excel spreadsheet with two tabs as req... View the full answer