Professional Documents
Culture Documents
Credits:
Child Tax Credit 2,100
American Opportunity Tax Credit 1,000
Prepayments 84,000
Total Credits & Prepayments 87,100
Explanation/Computations as needed
Tony & Jeannie Nelson
Nelson Engineering
2022
Item Description Amount Explanation/Computations as needed
Revenue 647,000
Cost of Goods Sold
Gross Profit 647,000
Business Expenses:
Wages 221,000
Rent Expense 36,000
Taxes 18,000 payroll tax
Utilities
Depreciation 4,500
Interest 1,250 2500/2 years
Travel 800 airticket 480+hotel 160*2
Entertainment
Meals 700
Other Expenses 3,800
Total Expenses 286,050
Net Business Taxable Income (Loss) 360,950
otel 160*2
Tony & Jeannie Nelson
Jeannie Abstracts
2022
Item Description Amount Explanation/Computations as needed
Revenue 42,000 Paintings 24000+18000
Cost of Goods Sold 13,175 425*31
Gross Profit 28,825
Business Expenses:
Wages
Taxes 1,900 studio
Utilities 3,400 studio
Depreciation 3,600 studio
Other Expenses
Total Expenses 8,900
Net Business Taxable Income (Loss) 19,925
Cost=6500+15000/2=14000
STCL
- -
1,500
600
34,750
Taxes Paid
Property Tax 7,600
Interest Paid
Mortgage Interest 16,200
Charitable Contributions
Total Expenses -
Explanation/Computation
Qualified business income (QBI) from Nelson Engineering 647,000
W-2 Wages for this activity 221,000 given
Qualified Property (investment) for this activity
ven
Tony & Jeannie Nelson
Tax Calculations
2022
Extra Medicare
Tony SE Taxable 333,337
Jeannie SE Taxable 18,401
Jeannie Salary 12,000 ?
Total S E Taxable 363,738
Extra Medicare MFJ Floor
Amount Subject to extra 363,738
Extra Rate 0.9%
Extra Medicare Tax 3,274
ation/Computations as needed
?
Tony & Jeannie Nelson
Tax Credits
2022
Child & Dependent Tax Credit Explanation/Computations as neede
# of children eligible for credit 1 one under 17
credit per child amount 2,000
# of other dependents 2 2 child 17+19
Per other dependent credit amount 500
Total Child Tax Credit before phase-out 3,000
2 child 17+19