John and Susan file a joint income tax return for 2018.They have two dependent children, students, ages 19 and 20.John earns wages of $908,000 and John and Susan have interest income of $102,000.In 2018, they settle a state tax audit and pay $50,000 for back state taxes due to an overly aggressive tax-sheltered investment.Their other expenses for the year include: $$\begin{array} { l r }
\text { Mortgage interest } & \$ 23,000 \
\text { Real estate taxes } & 12,000 \
\text { State taxes withheld } & 33,500 \
\text { Cash contributions } & 56,000 \
\text { CPA fees for assistance with the state audit } & 4,500
\end{array}$$
a.Calculate John and Susan's 2018 regular tax and tentative minimum tax on the schedule provided.
b.How much is the total tax liability shown on John and Susan's 2018 Form 1040?

Question

John and Susan file a joint income tax return for 2018.They have two dependent children, students, ages 19 and 20.John earns wages of $908,000 and John and Susan have interest income of $102,000.In 2018, they settle a state tax audit and pay $50,000 for back state taxes due to an overly aggressive tax-sheltered investment.Their other expenses for the year include:​ $$\begin{array} { l r } 
\text { Mortgage interest } & \$ 23,000 \
\text { Real estate taxes } & 12,000 \
\text { State taxes withheld } & 33,500 \
\text { Cash contributions } & 56,000 \
\text { CPA fees for assistance with the state audit } & 4,500
\end{array}$$ 
a.Calculate John and Susan's 2018 regular tax and tentative minimum tax on the schedule provided.​​  
b.How much is the total tax liability shown on John and Susan's 2018 Form 1040?

Quizplus · Accepted Answer

The Answer of John and Susan file a joint income tax return for 2018.They have two dependent children, students, ages 19 and 20.John earns wages of $908,000 and John and Susan have interest income of $102,000.In 2018, they settle a state tax audit and pay $50,000 for back state taxes due to an overly aggressive tax-sheltered investment.Their other expenses for the year include:​ $$\begin{array} { l r } 
\text { Mortgage interest } & \$ 23,000 \
\text { Real estate taxes } & 12,000 \
\text { State taxes withheld } & 33,500 \
\text { Cash contributions } & 56,000 \
\text { CPA fees for assistance with the state audit } & 4,500
\end{array}$$ 
a.Calculate John and Susan's 2018 regular tax and tentative minimum tax on the schedule provided.​​  
b.How much is the total tax liability shown on John and Susan's 2018 Form 1040?

John and Susan File a Joint Income Tax Return for 2018.They