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Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are under age 16). She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte’s father received $2,400 from a part-time job. Charlotte has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. Using the Tax Rate Schedules, compute Charlotte’s 2019 tax liability.

Answer :

Tundexi

Answer:

Tax Liability for Charlotte = $6524

Explanation:

Note: The 2019 Tax rate schedule is attached as picture

Particulars                                    Amount

Salary                                            $80,000

Less: Short term capital loss       $2,000

Add: Cash prizes                          $4,000

Adjusted Gross Income (AGI)      $82,000

Less: Greater of standard -2018  $24,400

Taxable Income                            $57,600

Tax Liability for Charlotte = $1,940 + ($57,600 - $19,400)*12%

Tax Liability for Charlotte = $1,940 + $38200*12%

Tax Liability for Charlotte = $1,940 + $4,584

Tax Liability for Charlotte = $6524

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