You are meeting with new clients, Fred and Wilma Flintstone, to prepare the tax return for the
Question:
You are meeting with new clients, Fred and Wilma Flintstone, to prepare the tax return for the year 2020. The following information is what you are provided with:
Fred is in sales. Wages were $182,215.80, F/W is $35,738; Social Security Wages is $137,700, Social Security tax w/h is $8,537.40; Medicare Wages is $212,097.46 and Medicare tax is $3,184.29; State Wages are $185,215.80 with NY tax w/h of $13,999.67. Fred contributed $26,000 to his 401k Plan and was born 8/5/1964.
Wilma is a teacher, and her Wages were $113,022.92 with F/W of $13,509.82; Social Security wages are $132,522.92, Social Security tax W/H is $8,216.46; Medicare wages are $132,522.92 and taxes W/H are $1,921.54; NY State wages are $113,022.92 with taxes W/H $6,333.58. Wilma also contributes to the 403b plan in the amount of $19,500 and was born 12/8/1971. Wilma is also a coach for Volleyball on the side and earned $3,400 as a non-employee and has expenses totaling $2,751.
Fred and Wilma have two children, Eli and Peyton. They are twins born 9/1/2006. They live in Bedrock, NY in a one family house. The mortgage balance is $236,000. During the year the interest paid was $7,589.13. The real estate taxes were $17,316.12. The interest earned during the year was $26. They are very charitable and their contribution to church and other charities was $4,068. In addition, they gave clothing, household goods, toys, and furniture to a local charity worth $10,000 with a thrift value of $1,185.
You must answer the following questions:
- What is their Total Income?
- What is their Adjusted Gross Income?
- What is their Taxable Income?
- How much is the tax on their income?
- Are there any other taxes that should be included?
- Will they receive a refund or owe? How much?
Ethics in Accounting A Decision Making Approach
ISBN: 978-1118928332
1st edition
Authors: Gordon Klein