Tom is a self-employed individual who operates a small business in his home. In the year 2022,
Fantastic news! We've Found the answer you've been seeking!
Question:
Tom is a self-employed individual who operates a small business in his home. In the year 2022, he earned a gross income of $60,000. Tom wants to calculate his federal income tax liability for the year. Tom is married and has two children under the age of 18. His spouse did not have any income in 2022.
Tom had business expenses of $20,000 for the year. In addition, he had the following deductions:
- $5,000 for contributions to a traditional IRA
- $2,500 for alimony payments to his ex-spouse
- $1,500 for property taxes paid on his home
Tom also paid $5,000 in estimated tax payments throughout the year.
Calculate Tom's federal income tax liability for the year 2022.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: