In 2020 Richard Cranium made $42000 fromtheir employer, but he did well in the stockmarket and was paid $5000 in dividends.What was his tax liability?

Taxable income = 42,000+5,000= 47000 Tax rate = 12% for $19,751 to $80,250($1,975 plus 12% of the…

Answered: What was his tax liability?

Business

Accounting

What was his tax liability?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 40P

See similar textbooks

Related questions

Q: QUESTION: if Chiz is non-VAT registered, how much is the business tax payable?

A: Non Vat Register For the Non Vat register whose gross sales / gross receipts which are not crossed…

Q: How much does she have to include in taxable income?

A: Answer: Any settlement that is received after damage is taxable other than recovery for emotional…

Q: What capital gains are subject to capital gains taxation?

A: The сарitаl gаins tаx is the levy оn the рrоfit frоm аn investment thаt is inсurred…

Q: What is the examples of estate tax?

Q: what is the possible tax implication?

A: Corporate tax rate = 25% Allowable deductions = P150,000 for November Allowable deductions =…

Q: What are the ethical responsibilities of the tax practitioner in dealing with tax evasion?

A: Tax evasion is a criminal crime in which a person or corporation intentionally avoids paying a…

Q: What distinguishes an income tax from other taxes?

A: A tax is a governmental entity's required financial charge or other kind of levy put on a taxpayer…

Q: What is the tax shield of interest?

A: Interest tax shields: It alludes to the assessment obligation decrease because of the interest…

Q: How much is the estate tax?

A: Estate Tax- It is the tax imposed on the property transferred upon the death of a person. Under…

Q: What are some of the effects of the crypto-related activities on an individual's tax payable?

A: Answer:- Cryptocurrency meaning:- A cryptocurrency is a kind of digital or virtual currency that is…

Q: Why is the Donor's tax is the advantageous for the taxpayer? Explain

A: Donar's tax refers to the tax on a donation or gift. It is imposed on the gratuitous transfer of…

Q: What is DONNER's current tax expense?

A: Current tax expense refers to the tax payable by the Company relating to the current year.

Q: What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim…

A: The federal government developed the earned income tax credit (EITC) to help low-income and some…

Q: What is the net tax consequences of these dispositions?

A: The disposition of the assets means sales, exchange, or donation of the assets. The disposition of…

Q: what is mean by Tax evasion and what reasons the people do this?

A: Tax obligation represents the liability of the taxpayer towards the government for the payment of a…

Q: what are the characteristics of a good tax system?

A: Tax system is designed by the government of every country which is imposed on the individual’s…

Q: What are long-term capital gains? Are they taxed like other income? Explain.

A: A long-term capital gain or loss is the gain or misfortune coming about because of the selling of…

Q: What is your firm’s tax expense in its latest financial statements?

A: The tax expenses in the financial statement of the company refers to the amount of taxes paid by the…

Q: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?

A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets.…

Q: What are the Sources of Tax Laws?

A: Tax: It is a mandatory fee levied by the government on the individual and organization.

Q: e from Tax Evasion?

A: The difference is given as,

Q: What is Estate Tax?

A: An estate tax is a financial duty levy on estates whose value surpases an allowed limit set by law.…

Q: How is Gross Income defined in the Tax Code and what are the implications to individual and business…

A: Hi, since you have asked multiple questions, we are answering the 1st question for you. To get the…

Q: What are some common taxpayer penalties?

A: Common taxpayer penalties are those fines or penalties which are to be paid in case of non…

Q: what is Tax Avoidance and Tax Evasion?

A: Tax avoidance refers to the use of legal means to avoid paying tax. Individual taxpayers and…

Q: What is the effect on the tax liability of a taxpayer who does not protest an assessmer

A: Deficiency Taxes: It is the amount of tax as per the tax authority which is not paid by the…

Q: What is the resort's net income for tax purposes?

A: Safe haven wildlife resort operate a proprietors-ship that generate $20000 in income under GAAP.…

Q: What are the benefits or advantages of filing a consolidated income tax return?

A: The consolidated tax return represents the single tax return of the affiliated group of companies.…

Q: Explain the Tax Treatment of Personal and Qualified Residences?

A: Tax Treatment of Personal and Qualified Residence: During one taxable, one taxpayer can choose 2…

Q: how to calculate someones adjusted basis in tax

A: Adjusted basis refers to the amount of gain or loss earned on selling the property. It includes the…

Q: Why is recordkeeping so important as a taxpayer and tax preparer?

A: Record keeping is the process of maintaining and keeping all the accounting records of the business…

Q: How do you calculate State Tax? How do you calculate FICA Tax

A: State tax: State income tax is a direct tax. State tax is levied by a state in the state the…

Q: What is personal income tax and it's use?

A: Income tax is a type of tax that governments impose on income generated by businesses and…

Q: how is income tax expense calculated?

A: Income tax expense is form of direct tax which needs to be paid by individual or business…

Q: What are capital gains and losses, and how are they taxed?

A: A capital gain is the amount of profit you receive when you sell a capital asset or is realized when…

Q: What will be the effect after To complete a successful tax-deferred exchange for the investor?

A: Tax Deferred : It refers to the instances when the tax payer delays payment of tax for some future…

Q: Why every person needs tax planning?

A: Tax planning is something by which an individual or any entity can plan out on how much tax it can…

Q: What are the importance of taxation in your life

A: solution concept Tax is an important source of revenue for the government Government collects the…

Q: What is tax due?

A: Tax Due: Tax due is the tax liability that is payable by any individual person or a corporate body…

Q: hank

A: Tax law, the body of rules under which a public authority has a claim on taxpayers, requiring them…

Q: ous for the taxpayer? Explain

A: Meaning of Income Taxes Income taxes are the taxes which are paid on the income of an individual.…

Q: Explain Residence and domicile for tax purposes

A: Tax is the liability that has to be paid by the individual and the corporation to the federal…

Q: What form of business pays personal income tax?

A: Income tax, as the name suggests, is calculated on the income of assessee and payable according to…

Q: May the taxpayer's liability to pay tax be a subject of set-off? Why?

A: May the taxpayer's liability to pay tax be a subject of set-off? Why?

Concept explainers

Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.

Question

In 2020 Richard Cranium made $42000 from
their employer, but he did well in the stock
market and was paid $5000 in dividends.
What was his tax liability?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the total tax due for 2023, including self-employment tax, for Stuart, assuming he earned $20,000 in wages, earned $24,000 in self-employment income from his first business, had a loss of $10,000 from his second business, received $3,000 in interest income, and had $5,100 in nonqualified (ordinary) dividend income?
This year Lloyd, a single taxpayer, estimates that his tax liability will be $13,300. Last year, his total tax liability was $17,200. He estimates that his tax withholding from his employer will be $9,890. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Dates Actual withholding Required withholding Over (under withheld Penality per quater April 15th June 15th Sept. 15th Jan. 15th Total ------------------------------
1. Meredith owns her own business. In 2020, she had business revenue of $268,450 and business deductions of $75,900. She had no other activity that affected her tax return. a. Calculate her self-employment tax. b. Calculate her AGI.
Corina is self-employed. In 2020, her net profit from self-employment was $200,000, and she has no other income. What is Corina's SE tax liability? Round your answer to the nearest whole dollar.
This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000.He estimates that his tax withholding from his employer will be $7,800. A. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? B. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent Dates 15- Apr 15- Jun 15- Sep 15- Jan TTL Actual witholding Req witholding Over (under) witheld Penalty per qtr
This year Lloyd, a single taxpayer, estimates that his tax liability will be $13,000. Last year, his total tax liability was $17,0 He estimates that his tax withholding from his employer will be $9,700. Required: a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume short-term rate is 5 percent. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Required A Required B Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Required Withholding Penalty Per Quarter Dates April 15th June 15th September 15th January 15th Total…
Meredith owns her own business. In 2020, she had business revenue of $268,450 and business deductions of $75,900. She had no other activity that affected her tax return.a. Calculate her self-employment tax.b. Calculate her AGI.
In 2020, Shelly had net earnings from her business of $160,000. What is the amount of Shelly’s self-employed tax? Round answer to nearest dollar.
Allan has a gross income of P400,000 in 2020. His employer deducted P5,000 SSS, P4,000 PHIC, P3,000 HDMF, P2,000 union dues, and P80,000 creditable withholding tax. How much is the total final tax due of Allan?
Katherine earned $100,000 from her job at a local business in 2021. She also had $52,000 in self-employed consulting income. What is the amount of her self-employment tax rounded to the nearest dollar?
Elmer had the following income and losses in 2022: Source Wages Interest Income Unemployment benefits Child support payments Food stamp benefits Insurance settlement for car accident resulting in broken leg Life insurance proceeds from death of his mother Amount $38,000 $75 $12,000 $5,000 $5,000 $10,000 $20,000 How much gross income must Elmer report on his tax return?
This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be $7,800. Required: a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. Complete this question by entering your answers in the tabs below. Required A Required B How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Increase in withholding