Reference no: EM131763534

Scenario: Please note, this is the same from Unit 4. Only in this assignment, you have to adjust for the self-employment addition.

The Park family consists of the following:

• Jackie O. Park; age 40; SSN: XXX-XX-XXXX; business analyst; single; unmarried
• Leslie T. Park; age 16; SSN: 000-00-0000; daughter; high-school student; lives at home
• Alex K. Park; age 12; SSN: NNN-NN-NNNN; son; middle-school student; lives at home

Pertinent information:

• Address: 132 Oakbrook Drive, Houston, Texas 77091
• The Parks do not want to contribute to the presidential election campaign
• Jackie does not receive child support. She pays all of the household expenses including the upkeep of Leslie and Alex. Only Jackie can claim Leslie and Alex as dependents.
• Using the correct Tax Rate Schedule (Not to be confused with the IRS Tax Tables) calculate the tax payer's Tax Liability 
• Jackie also operates a realty company on a part-time basis. Her income from this business is from real estate sales during the year. She is a sole proprietor and her company's name is Jaleal Realty Company. Jackie rents a small office to operate this business.

Jackie had the following earnings on her W-2:

• Wages: $55,159
• Federal tax withheld: $7,460
• Social Security tax withheld: $3,420
• Medicare tax withheld: $800

Jackie had the following income (as shown on Form 1099) and expenses from her business:

• Total self-employment income reported on Form 1099 was $23,000 and came from the real estate commissions earned from home sales.

Business Expenses:

Other tax data:

• Texas State's general sales tax deduction allowed is $924.
• Jackie received $610 of personal interest income from her bank.
• She donated $230 in cash to her church during the year.
• Real estate taxes paid on her personal residence were $1,980, and the mortgage interest paid to her bank in New York, NY on the primary residence for the year was $16,000.
• Medical expenses for the family were as follows:
  • medical insurance premium $3,244
  • payments for doctor's visits $1,760
  • $850 was paid for dentists
  • $230 for prescription drugs
• Using the proper tax rate schedule for her filing status, calculate Jackie's tax liability.