Marc, a single taxpayer, earns $64,200 in taxable income and $ 5,420 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for 2020, how much federal tax will he owe? ( Round your final answer to the nearest whole dollar.) (Use tax rate schedule.) A) $9.914 B) $14,250 C) $7,968 D) None of the choices are correct E) $7,729

Q: Rasheed works for Company A, earning $401,000 in salary during 2021. Assuming he is single and has…

A: FICA tax rate limits :- Social security taxes = 6.2% upto $142,800 Medicare tax = 1.45% Additional…

Q: Vernon is a cash basis taxpayer with a calendar tax year. On October 1, 2020, Vernon entered into a…

A: General rule vs 12 months for prepaid expense for Cash basis taxpayer The general rule is stating…

Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…

A: The standard amount of deduction for interest expense for the year 2021 is determined to be $12,550…

Q: Chuck, a single taxpayer, earns $77,000 in taxable income and $10,000 in interest from an investment…

A: Taxable income: It is the amount of income that is used to compute the amount tax has to be paid by…

Q: John is single and has AGI of $250,000. He also made the following investments. What is his total…

A: Capital gain refers to the increase in an asset value and it becomes realized once the assets are…

Q: In 2021, Henri, a U.S. citizen and calendar year taxpayer, reports $24,600 of income from France,…

A: Given that France tax = $24,600 x 10% = 2,460 Italy tax = 44,400 x 40% = 17,760 Total creditable…

Q: Nicanor, having a capital of Php 100,000, filed as a non-VAT taxpayer in 2019. The following is a…

A: Taxes are pressured contributions imposed via way of means of a central authority corporation on…

Q: ong earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20…

A: solution : part a) given : song earns         =$100,000 taxable income current average tax rate…

Q: In 2020, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real…

A: By taking ordinary income and incorporating disallowed items and credits including state and local…

Q: Leonardo , who is maried but files separatley, earns $64,000 taxable income. He also has $16,800 in…

A: The tax rate that applies to each tax bracket of a taxpayer's income or other taxable income for…

Q: enrich is a single taxpayer. In 2020, his taxable income is $451,000. What is his income tax and net…

A: Taxable income $450,000 Less: preferentially  taxed income  $55,000 income taxed at ordinary…

Q: Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment…

A: It is the average rate at which income of individual is taxed.

Q: Brian, a self-employed individual, pays state income tax payments of: $ 900 on January 15, 2020…

A: SOLUTION- DEDUCTION- IT IS THE INVESTMENT/EXPENDITURE THAT HELPS IN REDUCING THE TAX PAYABLE.

Q: Dawn is a single taxpayer. Her income and expenses for the year is as follows: Income…

A:

Q: Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an…

A: Federal income tax withholding:   The amounts which the employer withheld from employees’ gross pay…

Q: Taylor, age 16, is claimed as a dependent by her parents. For 2020, she has the following income:…

A: Kiddie tax is applicable on a dependent child if all the following requirements are met for the…

Q: akes out a $200,000 home equity loan to put an addition on the main home.  Both loans are secured by…

A: Income interest is a borrowing expenditure that may be deducted from taxable income by filing a…

Q: Mark files as a head of household in 2020 and has taxable income of $130,000, including the sale of…

A: Tax: It is the amount that is paid for the services the government has rendered to the public. It is…

Q: Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment…

A: Note: 2021 federal income tax brackets are used in answering this question as the year was not…

Q: 1.Jake pays $8,500 in deductible property taxes. His marginal tax rate is 31%, his effective tax…

A: Jake pays $ 8500 in the deductible property taxes. We are supposed to calculate the savings in tax…

Q: Chuck, a single taxpayer, earns $76,600 in taxable income and $11,700 in interest from an investment…

A: Marginal tax rate is the rate charged on taxable income for every additional dollar earned. In this…

Q: Jorge and Anita, married taxpayers, earn $158,000 in taxable income and $42,000 in Interest from an…

A: Interest is non taxable income So the Taxable income is $ 158000 Average tax rate = Total tax…

Q: Allen Green is a single taxpayer with an AGI (and modified AGI) of $217,000, which includes $173,500…

A: Given, Allen Green is a Single Tax Payer:- Net Investment = Interest Income + Dividends + Long term…

Q: Wanda, a single taxpayer, has alternative minimum taxable income of $149,200 for 2020. Her regular…

A: Alternative Minimum Tax (AMT) is a tax liable on the minimum income earned by a person in the United…

Q: Jaclyn Biggs, who files as a head of household, never paid AMT before 2021. In 2021, her regular tax…

A: Taxpayer should pay higher tax amount between AMT and regular Tax. Total Income Tax under AMTI…

Q: Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment…

A: Marginal Tax Rate = Change in Tax LiabilityChange in Taxable Income

Q: Angelena files as a head of household. In 2021, she reported $54,900 of taxable income, including a…

A: Introduction: Accountants must assess their tax liabilities to guarantee that they can pay the right…

Q: Robert is a single taxpayer who has an AGI of $145,000 in 2020, his taxable income is $122,000. What…

A: Tax liability of an individual depends on the net taxable income for the previous period. Taxable…

Q: Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $760…

A: Taxes withheld by federal is not deductible

Q: Pham, single, has wages of $208,000 and net investment income of $140,000 in 2020. Her AGI (MAGI) is…

A: The Medicare tax liability is the withholding tax liability charged by the IRS on the…

Q: Mario, a single taxpayer with two dependent children, has the following items of income and expense…

A: Part( a )Mario's taxable income or loss for 2020. Adjusted Gross Income :-  Gross receipts from…

Q: Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduc-tion, and $10,000…

A: Answer and explanation are given below

Q: This year Lloyd, a single taxpayer, estimates that his tax liability will be $12,400. Last year, his…

A: Solution:- Calculation of the amount of his underpayment penalty if federal short-term rate is 5…

Q: Tonya, who lives in California, inherited a $100,000 State of California bond in 2021. Her marginal…

A: California Bond: Interest payment = 3.3% Interest is not subject to California Income tax. Most…

Q: Campbell, a single taxpayer, earns $440,000 in taxable income and $4,000 in interest from an…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Chuck, a single taxpayer, earns $76,300 in taxable income and $11,500 in interest from an investment…

A: A taxpayer is a person or a legal body (such as a corporation) who is obligated to pay a tax. The…

Q: MOMO is an employee of BTS Corporation and earned $200,000 for the taxable year 2021. If for the…

A: MOMO's taxable income would be: $200,000 + $450,000 = $650,000  Her income tax due would be:…

Q: An unmarried taxpayer with no dependents expects an adjusted gross income of $87,000 in a given…

A: Step 1 As per provisions of US Federal tax, income excess over $36900 is 25% tax chargeable and…

Q: Javier and Anita Sanchez purchased a home on January 1, 2021, for $600,000 by paying $200,000 down…

A: After Tax Interest Cost: The after-tax cost of debt is equal to the interest paid on debt minus any…

Q: Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20…

A: Income tax is the liability of the business which is paid to the government for using its resources.…

Q: Jaclyn Biggs, who files as a head of household, never paid AMT before 2021. In 2021, her regular tax…

A: Compute the Jacklyn's total income tax for 2021:- Jacklyn's total income tax is $ 111,110…

Q: 3. For the 2020 tax year, Nancy, a single taxpayer, receives $12,000 in Social Security benefits.…

A: For the 2020 Tax Year percentage of Social Security Benefit is Taxable if  Income is Less than 25000…

Q: Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment…

A: Given that's Taxable Income = $75000 Interest from Investments = $10000

Q: Kirsy , a single taxpayer, has taxable income of $40,000 and is in the 12% tax bracket. During 2021,…

A: Correct option is D i.e 12% × 23,000   Explanation:

Q: In 2020, Simon, age 12, has interest income of $5,820 on funds he inherited from his grandmother and…

A: Net unearned income $5,820 Less: Standard deduction  ($1,100) Gross unearned income $4,720…

Q: chuck a single taxpayer, earns $78,300 in taxable income and $13, 600 in interest from an investment…

A: The sum of incremental tax paid for each extra dollar of income received is known as the marginal…

Q: 34.For 2020, the maximum percentage of Social Security benefits that could be included in a…

A: 35. The maximum percentage of Social Security benefits that could be included in a taxpayer’s gross…

Q: Campbell, a single taxpayer, earns $428,000 in taxable income and $3,400 in interest from an…

A: The tax liability of a taxpayer depends upon the taxable income and the filing status. The tax…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.