Rob (age 40) and Susan (age 39) Cowen are married. Susan works as a retail manager and Rob is a self-employed electrician but does not maintain a home office. Their 2014 tax and other information are as follows:
|
Salary - Susan
|
75,000
|
|
Federal withholding on salary
|
29,000
|
|
State withholding on salary
|
4,000
|
|
Interest income on municipal bonds:
|
|
|
State of Connecticut
|
2,000
|
|
Savings account interest
|
900
|
|
Dividends from RGR, Inc. (all are non-qualified)
|
3,000
|
|
Value of employer provided medical insurance
|
2,000
|
|
Inheritance from Susan's father's estate
|
7,000
|
|
Interest paid on personal car loan
|
800
|
|
Interest paid on personal loan
|
1,000
|
|
Child support paid to Rob's ex-wife
|
10,000
|
|
Alimony paid to Rob's ex-wife
|
3,000
|
|
Qualified Out of Pocket Medical Expenses
|
4,000
|
|
Donations to church
Real Estate taxes on primary residence
|
2,500
6,000
|
|
Mortgage interest on primary residence (<$1M)
|
4,000
|
|
Rob's business revenues
|
50,000
|
|
Rob's business expenses
|
17,000
|
|
|
|
|
Required: Using the tax formula format, determine the following for the Cowen's 2015 tax year(show all calculations):
All Income $___________
Exclusions (if any) $ ___________
Gross income (including Rob's SE income) $ ___________
Deductions For AGI $ ___________
Adjusted gross income $ ___________
Itemized deduction or standard deduction amount $ ___________
Deduction for exemptions $ ___________
Taxable income $ ___________
Income tax liability $ ___________
Self-employment tax liability $ ___________
Net tax due or refund (show calculation) $ ___________