Geoffrey Ashworth is a single orthopedic surgeon based in Nashville, Tennessee, who earns a substantial salary from a regional hospital system and also runs a solo medical consulting practice generating significant self-employment income. He holds a taxable brokerage account with dividend-paying stocks and recently sold shares at a modest gain. Geoffrey pays considerable mortgage interest and state income taxes (capped), making itemized deductions worthwhile.
Correct Answers
A G I
$569,850.00
gross Income
$571,250.00
tax Liability
$154,367.25
taxable Income
$528,650.00
refund Or Due Amount
$90,537.25
refund Or Due Direction
Balance Due
Step-by-Step Solution
TAX FORMULA — Geoffrey Ashworth (SINGLE) GROSS INCOME Wages: $404,000.00 Interest Income: $1,200.00 Ordinary Dividends: $6,550.00 Business Income: $155,500.00 Capital Gain: $4,000.00 = Gross Income: $571,250.00 − Above-Line Deductions: $1,400.00 = AGI: $569,850.00 DEDUCTIONS Standard Deduction (single): $14,600.00 Itemized Deductions: $41,200.00 Deduction Used: $41,200.00 (itemized) = Taxable Income: $528,650.00 TAX CALCULATION Ordinary Taxable Income: $521,750.00 Ordinary Tax: $152,987.25 LTCG + Qualified Div: $6,900.00 LTCG Tax: $1,380.00 − Credits: $0.00 = Tax Liability: $154,367.25 − Taxes Withheld: $63,830.00 = Tax Due: $90,537.25