Reference no: EM132019927

Question - Show all components of your work for partial credit review.

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):

a. All Income

b. Exclusions (if any)

c. Gross income (including Rob's SE income)

d. Deductions For AGI

e. Adjusted gross income

f. Itemized deduction or standard deduction amount

g. Deduction for exemptions

h. Taxable income

i. Income tax liability

j. Self-employment tax liability

k. Net tax due or refund (show calculation)