John Smith (Social Security number 111-11-1111) is 50 years old and is married to Joan Smith (Social Security number 123-45-6789). The Smiths live at 512 Ferry Road, Newport Beach, CA 92603. They file a joint return and have two dependent children, Ryan, age 13, and Ashley, age 14. Ryan’s Social Security number is 123-45-6788, and Ashley’s Social Security number is 123-45-6787. In 2018, John and Joan had the following transactions: 1. John received $200,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $37,750 and the appropriate FICA and Medicare tax withholding was done. how do we report income tax 2018 for this piece of information
|
Gross income (Salary) |
200000 |
|
For AGI deductions |
0 |
|
AGI |
200000 |
|
Less: standard deduction |
24000 (married filing jointly, 2018) |
|
Taxable income |
176000 |
|
Tax liability (28179+(24%*(176000-165000))) |
30819 |
|
Federal tax withholdings |
(37750) |
|
Tax credit |
(4000) (child credit = 2000*2 = $4000) |
|
Tax due (refund) |
$(10931) |
Tax refund = $10931
John Smith (Social Security number 111-11-1111) is 50 years old and is married to Joan Smith...