Description of this paper

Calculate the taxable income for Tom and Terry

Description

solution


Question

Tom and Terry are married and have one child, Tammy, age 20, who is completely disabled. Tom is a self-employed handyman. Terry is a full-time caregiver for Tammy.;1. Tom supplies the following information for his business;Revenue from services $65,000;Materials used for customers, not billed separately 20,000;Work related conference registration fees 1,500;Travel to conferences 1,250;Hotels at conferences 420;Meals at conferences 190;Accounting fees paid 1,200;Internet connection fees 1,850;Legal fees 625;Office supplies 240;Medical insurance premiums 4,000;2. Both Tom and Terry contributed the maximum amounts to their IRAs.;3. They paid $4,000 for a part-time caregiver to help care for Tammy.;Calculate the taxable income for Tom and Terry. Then calculate the tax due ? be sure to include the self-employment tax for Tom. Show and label all of your work for partial credit.

 

Paper#20421 | Written in 18-Jul-2015

Price : $22
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