This topic contains a solution. Click here to go to the answer

Author Question: Jeff and Kathy O'Connor file a 1040 jointly. Jeff earned 39,000 and Kathy earned 13,700 working part ... (Read 172 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
Jeff and Kathy O'Connor file a 1040 jointly. Jeff earned 39,000 and Kathy earned 13,700 working part time. The O'Connors have four children. Jeff contributed 3,500 to his IRA. They had 5,200 in medical and dental expenses. They paid 4,390 in real estate taxes, 7,260 in mortgage interest, and made 1,500 in charitable contributions. Together they had 1,825 withheld for income tax during the year. Using a tax table, how much additional tax do they owe or what is their refund?

Question 2

Pyuish and Vi Kashia file a 1040 jointly. Pyuish earned 37,570 and Vi earned 41,230. The Kashias have three children. Both Pyuish and Vi contributed 2,000 to their IRAs. They had 3,129 in medical and dental expenses. They paid 2,670 in real estate taxes, 1,220 in student loan interest, 4,890 in mortgage interest, and made 3,000 in charitable contributions. What is their taxable income?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcarey591

  • Sr. Member
  • ****
  • Posts: 365
Answer to Question 1

The O'Connors will receive a 472 refund.
Total income: 52,700; subtract the IRA contribution; 52,700 - 3,500 = 49,200
Medical and dental: 5,200; 7.5 of adjusted gross income is 0.075  49,200 = 3,690;
5,200 - 3,690 = 1,510 is deductible.
Total deductions: 1,510 + 13,150 = 14,660;
Deduct for exemptions: 6  3,500 = 21,000;
Subtract deductions and exemptions from the adjusted gross income:
49,200 - 14,660 - 21,000 = 13,540.
Use the tax table to find tax: 1,353. Then find the difference between the amount paid, 1,825, and the amount owed: 1,825 - 1,353 = 472.

Answer to Question 2

45,520;
Total income: 78,800; subtract the IRA contributions; 78,800 - 4,000 = 74,800;
Medical and dental of 3,129 is less than 7.5 of adjusted gross income, so it is not deductible.
Total deductions: 11,780; Deduct for exemptions: 5  3,500 = 17,500
Subtract deductions and exemptions from the adjusted gross income:
74,800 - 11,780 - 17,500 = 45,520




Collmarie

  • Member
  • Posts: 569
Reply 2 on: Jun 24, 2018
YES! Correct, THANKS for helping me on my review


dreamfighter72

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Excellent

 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library