1a. Kevin is single. In 2020, he earned $65,000 in salary this
year from his employer and received $10,000 in alimony from his
ex-wife. They divorced on July 1, 2017. His employer withheld
$9,000 in tax from his salary this year. In addition to the above,
the following occurred this year:
He decided he did not like his nose. So he paid $2,000 in
cosmetic surgery to make it larger and more defined.
He paid $2,500 in union dues and for subscriptions to
publications related to his work that were not reimbursed by his
employer.
He paid $15,000 in rent his apartment for the year.
Fill in the blank: Kevin's AGI for 2020 is $_______.
1b. Fill in the blank: Ignore your answer in a).
Assume that Kevin’s AGI for the year is $78,650. The amount of
itemized deduction Kevin has available this year is
$_______.
1c. Ignore your answer in b). Assume that
the amount of itemized deduction available is $2,780. Using the
2020 standard deduction amounts (assuming no additional amounts for
age or blindness) from Appendix D in your book, determine whether
Kevin will itemize or take the standard deduction.
Itemize
Standard Deduction
1d. Fill in the blank: Ignore your answer in a) -
c). Assume that Kevin’s taxable income is $42,720 and his employer
withheld $9,000 in tax from his wages. Using the tax rate schedule
from Appendix D in your book, the amount of taxes due or the amount
of refund due is $_______. Remember that if the amount represents
tax due this is entered as a positive value (e.g. syntax: a $5,000
tax due amount should be entered as 5000) whereas if the amount
represents a tax refund this is entered as a negative value (e.g.
syntax: a $5,000 tax refund amount should be entered as -5000).
Assume AMT does not apply, and there are no tax credits
available.
1a. Kevin is single. In 2020, he earned $65,000 in salary this year from his employer and received $10,000 in alimony fr
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