Shellys W-2 wages $ 55,800 Federal withholding 6,544 Social security wages...
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Shellys W-2 wages
$ 55,800
Federal withholding
6,544
Social security wages
55,800
Social security withholding
3,460
Medicare withholding
809
State withholding
3,148
1099-INT New Bank
977
1099-DIV XYZ, Incorporated
Ordinary dividends
771
Qualified dividends
522
Shelly had the following itemized deductions:
State income tax withholding (from W-2)
$ 3,148
State income tax paid with 2021 return
600
Real estate tax
4,200
Mortgage interest
11,739
Charitable contributions
3,050
Shelly also started her own home design consulting business in March 2022. The results of her business operations (Cash basis) for 2022 follows:
Gross receipts from clients
$ 157,662
Vehicle mileage
21,000 business miles (2,100 per month)
32,000 total miles during the year
2015 Chevy Suburban
Placed in service 03/01/22
Postage
(750)
Office supplies
(1,500)
State license fees
(155)
Supplies
(5,300)
Professional fees
(2,500)
Design software
(1,000)
Professional education programs (registration)
(550)
Travel to education program
Airplane
(350)
Lodging $119 per night 3 nights
Meals per diem for a day
88
Business Assets
Date Purchased
Cost
Laptop
6/08/22
$ 2,500
Computer
3/05/22
5,700
Printer
3/01/22
1,800
Copier
6/02/22
1,700
Furniture
4/01/22
5,000
Building
3/01/22
175,000
Phone
(600)
Internet service
(450)
Rent
(8,300)
Insurance
(1,700)
Shelly made a $30,000 estimated tax payment on April 10, 2022.
Required:
Prepare Shellys Form 1040 for 2022 including all appropriate schedules. Schedule A, Schedule C, Form 4562, and Schedule SE are required. Section 179 is elected on all eligible assets in 2022. She wants to contribute to the presidential election campaign and does not want anyone to be a third-party designee. Shelly has not acquired any financial interest in virtual currency last year. For any missing information, make reasonable assumptions. Use the appropriate EIC Tables (6A-6, 6A-7, or 6A-8). Use the appropriate Tax Tables and Tax Rate Schedules.
Note: List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your intermediate computations and your final answers to the nearest whole dollar amount. Do not skip rows while entering in Other Expenses section of Schedule C and in Section B of Part III Form 4562.
With this information, what is the line 11 in the Form 4562 P1 for business income limitation?
Answer & Explanation
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