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Unformatted text preview: 47--Angela has no self employment income and therefore no self employment taxArnie:20102011Part. Inc.40,00040,000Guar. Salaries35,00035,00075,00075,000x.9235x.923569262.569262.5x .153x .13357.51% for 2011SE Tax10597.1625 9211.9125(wil also receive 1/2 of SE tax as a foreign income)48--20102011a.Fees11,00011,000Consulting Inc.9,0009,000Consulting Exp.-15,000-15,000Self Emp. Inc.5,0005,000x.9235x.92354617.54617.5x .153x .133SE Tax706.4775614.1275b.50--a.b.1,200c.d.e.500 x 10 = 5000 assumed income51--a.Since the adoption was not finalized in 2010, there is no adoption credit in 2010For 2011:Agency Fees5,000Agency Fees4,000Travel1,500Travel400Publications??300Legal Fees1,000Court Costs1,500Total13,700b.13,360 in 2011c.52--a.American Opport. Credit for Phil(Qualified Tuition and Fees would be 7,500 + 500 + 400 = 8,400)American Opport. Credit for Jaci(Qualified Tuition and Fees would be 1,600 + 250 +1,750 + 300 = 3,900)Not subject to a phase out because their AGI of $112,000 is less thanthe phase outLifetime Learning for Phil in Fal semesterTuition8,000Lab Fees500Books450Total Edu. E8,950b.American Opport. Credit for Phil(Qualified Tuition and Fees would be 7,500 + 500 + 400 = 8,400 - 3,000 = 5,400)Jaci's would not change...
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- Spring '10
- Taxation in the United States, tax credit, SE tax