60.1K

Verified Solution

Link Copied!

Harry and Karla had the following information relating to their $2024$ taxes:

They have been married for $8$ years and have a dependent son Noah who is $15$ years and a dependent daughter $(18\mathrm{.}5$ years old and going to UW Platteville as an accounting major$).$ They have been married for $6$ years and had a two dependent sons and daughter $($triplets$)$ born in $2019.$

$1.$ Harry wages were $\backslash (\backslash$$ $86,000\backslash )$ and Karla received $\backslash (\backslash$$ $98,000\backslash )$

$2.$ They had total interest income of $\backslash (\backslash$$ $600\backslash )$ of which $\backslash (\backslash$$ $50\backslash )$ was received from Muni bonds.

$3.$ Harry inherited $100$ target stocks from the estate of his grandfather died in $2024$ while jogging. Grandpa's age was only $93$ when he collapsed and died. Harry received the stocks on February $25$ when the stocks were worth $\backslash (\backslash$$ $14,200\backslash )$; Grandpa had purchased the stocks for $\backslash (\backslash$$ $5,800\backslash )$ in $1999.$ He sold $50$ of these stocks on December $31,2024,$ for $\backslash (\backslash$$ $194\backslash )$ per share.

$4.$ They incurred$/$paid the during the year:

$-$ Karla paid $\backslash (\backslash$$ $18,000\backslash )$ to her former spouse, Todd; They had the divorce in $2015.$ Per the divorce decree, Karla was supposed to pay Todd $\backslash (\backslash$$ $1,000\backslash )$ per month to support Karla's son Eaton who was under the custody of her ex$-$husband. The payments would be reduced to $\backslash (\backslash$$ $500\backslash )$ per month once Eaton turns $18.$

$-$ They also sold Jordan company's Stocks on $10/1/24$ for $\backslash (\backslash$$ $15,000\backslash )$; they had bought the stocks on $11/5/23$ for $\backslash (\backslash$$ $7,000\backslash ).$

$-$ Medical expenses totaled $\backslash (\backslash$$ $13.,500\backslash )$; insurance reimbursed them for $\backslash (\backslash$$ $800\backslash ).$

$-$ Charitable contributions of $\backslash (\backslash$$ $8,800\backslash )$ to their church. They also donated $10$ shares of the Target corporation on November $30,$ to Purity Financial.Org.

$-$ Contributions to traditional IRA: Harry $\backslash$$$7,000$ and Karla $\backslash$$$6,000$

$-$ Mortgage interest on their residence of $\backslash (\backslash$$ $16,000\backslash ).$ The loan amount was $\backslash (\backslash$$ $400,000\backslash ).$

$-$ They also paid $\backslash (\backslash$$ $1,200\backslash )$ of interest to First National Bank. They got the loan from BOA to finance the purchase of the shares $($Jordan company and one more company$)$

$-$ Property taxes on her residence of $\backslash (\backslash$$ $4,800\backslash ).$

$-$ Federal Income tax withheld from Harry's salary was $\backslash$$$7,500$ and from Karla's salary $\backslash$$

$6,000.$ State income taxes withheld from their wages was $\backslash$$$4,200($Harry$-\backslash$$$2,000$; Karla $\backslash (\backslash$$ $2,200\backslash ))$

Calculate the following:

$1.$ AGI

$2.$ Taxable Income

$3.$ Income Tax on the taxable income.

$4.$ Balance Payable or refund due.

Answer & Explanation Solved by verified expert

See Answer