Federal Income Taxes Midterm Exam Show all


Question Description:

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Hi Aegupta, I have a problem and I’m stuck. I was wondering if you can help me out again. It’s a federal income tax assignment and it needs to be done today. I know it’s short notice and if you can’t do it I completely understand, I just wanted to ask you first because I’m familiar with you and you’re really good. Please see attached and let me know if it’s doable. Thank you again!! Midterm Exam(1).doc Federal Income Taxes Midterm Exam Show all components of your work for partial credit review. Cindy (age 40) and Don (age 39) Cowen are married. Don’s 17 year old son from a former marriage lives with them. They also fully support Cindy’s mother, Ellen who lives with them. Ella’s only income during 2013 was interest of 5,200. Cindy works as a retail manager and Don is a self­employed electrician. Their 2013 tax and other information are as follows: Salary – Cindy Federal withholding on salary State withholding on salary Interest income on bonds: Issued by Webster Bank State of Connecticut Savings account interest Dividends from RGR, Inc. (all are non­qualified) Value of employer provided medical insurance Value of premiums for $50,000 of group term life insurance Cindy’s mother’s medical expenses paid by Cindy Inheritance from Cindy’s father’s estate Personal loan obtained to pay credit card debt Interest paid on personal loan Child support received from Don’s ex­wife Alimony paid to Don’s ex­wife Donations to church Real Estate taxes on primary residence Mortgage interest on primary residence (<$1M) Don’s business revenues Don’s business expenses 50,000 18,000 2,000 3,000 2,000 700 5,000 3,000 500 9,500 7,500 20,000 1,000 8,000 3,400 1,500 4,500 3,000 40,000 16,750 Required: Determine the following for the Cowen’s 2013 tax year: a. Exclusions (if any) $ ___________ Federal Income Taxes Midterm Exam b. Gross income (excluding Don’s SE income) $ ___________ c. Don’s net self­employment income $ ___________ d. Adjusted gross income $ ___________ e. Itemized deduction or standard deduction amount $ ___________ f. Deduction for exemptions $ ___________ g. Taxable income $ ___________ h. Income tax liability $ ___________ i. Self­employment tax liability $ ___________ j. Net tax due/(refund) $ ___________ Read more

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