Answer:
Check the explanation
Explanation:
1040 form
Your first name : George Last Name: Large SSN:000-11-1111
Spouse’s first name :Marge Last Name: Large SSN:000-22-2222
Home address:
2000, Lake View Drive,
City, town or post office, state, and ZIP code:
Cleveland, OH,49001
Filing Status:
2) Married filing jointly
Income :
7)Salary:::::::::::::::::::::::::::::::::::::::::::$80,000
12 Business income:::::::::::::::::::::::::$4,375(SCHEDULE C)
22) Gross income=$84,375
27 Deductible part of self-employment tax.=$669.37
($4,375 * 15.3%/100=$669.37( $117,000 or less, multiply line 4 by 15.3% as per irs for 2014)
36 Add lines 23 through 35 = $669.37
37 Subtract line 36 from line 22. =$84,375 - $669.37=$83,705.63
38) Amount from line 37 (adjusted gross income) =$83,705.63
40 Itemized deductions:::::::::::::::::::::::::::::::::::::::::$18,870.89(see SCHEDULE A)
41 Subtract line 40 from line 38 :::::::::::::::::::::::::$64,923.98($83,793.12 - $18,870.89=$64,922.23)
42) Exemptions:::::::::::::::::NIL
43)Taxable income Subtract line 42 from line 41::::::::::::::::$64,922.23
55) Taxable income(no other credits and Tax)::::::::::::::::::::::$64,923.98
other taxes :
56 Self-employment tax:::::::::::::::::::::: $669.37
61) total tax =$669.37
Payments
62 Federal income tax withheld:$8,500
72 ) total payments= $8,500
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SCHEDULE A (Form 1040) Itemized Deductions
Taxes paid
6 Real estate taxes :::::::::::::::::::::::::::::$2,500
9 Add lines 5 through 8::::::::::::::::::::::::$2,500
10 Home mortgage interest :::::::::::::::::$3,375 *75/100=$3,375)
15 Add lines 10 through 14 .:::::::::::::::::$3,375
16 Gifts to Charity::::::::::::::::::::::::::::::::$3,500
19 Add lines 16 through 18 :::::::::::::::::::$3,500
21 Unreimbursed employee expenses:::$11,170( see the explanation 2106 form)
24 Add lines 21 through 23::::::::::::::::::$11,170
25 Enter amount from Form 1040, line 38 :::::::$83,793.12
26 Multiply line 25 by 2%:::::::::::::::::::::::::::::::$1 674.11
($83,705.63* 2/100=1 674.11)
27 Subtract line 26 from line 24=$9,494.14
($11,170 - 1 674.11=$9,495.89)
29)Total Itemized Deduction
29 Add the amounts in the far right column for lines 6 through 28. Also, enter this amount on Form 1040, line 40=$18,870.89
($2,500 +$3,375+$3,500+$9,495.89=$18,870.89
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SCHEDULE C (Form 1040)
Name of proprietor:Marge Large SSN:000-22-2222
A) Principal business: Repair Rubber Toy Boats:::::::::::::Business Code::::::::811490
Part 1
1) Gross receipts or sales::::::::::::::::::::::::::::$15,000
7 Gross income:::::::::::::::::::::::::::::::::::::::::::$15,000
Part II
Expenses:
11 Contract labor=$3,500
16 Interest: a Mortgage=$1,125($4,500 *25/100=$1,125)
22 Supplies =$5,000
25 Utilities=$500($2,000 * 25/100=$500)
27a)Other expenses= $500(phone )
28) Total expenses : Add lines 8 through 27a:$10,625
29 Tentative profit Subtract line 28 from line 7 =$4,375
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Form 2106
Employee Business Expenses
Part 1
Expense
1) Vehicle Expense :$ 10080 (0.56 cents * 18,000 miles)
3 Travel expense::::::::::::::::::::::::::$515($200 + $255 + $60)
(Airfare =$200
Loding = $85 per day * 3days= $255
Taxicabs=$20 per day *3days=$60)
5)Meals and entertainment expenses=$50 *50/100 per day *3 days=$75 +$5,500=$5,575
(Customer means and Entertainment=$1500+$4,000=$5,500)
6) total Expense =$16,170
7)reimbursements received =$5,000
8)Subtract line 7 from line 6=$16,170 - $5,000=$11,170