This activity provides hands$-$on experience in assessing and reporting partnership incomes, offering insights into the intricacies of tax implications for individuals with both partnership and employment income.

Instructions:Tax Evaluation $-$ Beth Johnson's Income from Partnership

Data for Beth Johnson:

Partnership Income: $$65,750$

Employment: Works at the US Postal Office

W$-2$ Information: $$65,850$ income, $$3,870$ withholding

Filing Status: Single taxpayer

Financial Transactions:

Partnership Income:

Beth Johnson received $$65,750$ from his partnership.

Employment Income:

Beth also earned $$65,850$ from his job at the US Postal Office, with $$3,870$ withheld.

Deductions:

Mortgage Interest: $$13,180$

Medical Expenses: $$6,570$

State Taxes: $$1,990$

Objective: Your task is to evaluate Beth Johnson's taxable income from the partnership, considering his employment income, deductions, and the unique tax implications of partnership earnings. Consider the data provided to ensure accurate reporting on both the partnership and individual tax forms.

Steps:

Analyze the partnership income and evaluate its taxable status.

Integrate the employment income from the W$-2$ into the overall financial picture.

Consider deductions for mortgage interest, medical expenses, and state taxes.

Explore how these elements affect Beth's overall tax situation.