Prudence Huntington is a single orthopedic surgeon based in Nashville, Tennessee, who earns wages from a hospital group practice and also operates her own consulting business that generated $169,000 in net profit during 2024. She received interest from a high-yield savings account, qualified dividends from a diversified stock portfolio, and realized a $18,500 long-term capital gain from selling appreciated shares. Her above-the-line deductions include $7,800 in self-employed health insurance premiums, and she itemizes deductions totaling $41,200, which include mortgage interest on her home, charitable contributions, and state and local taxes up to the SALT cap.
Correct Answers
A G I
$509,750.00
gross Income
$517,550.00
tax Liability
$130,097.25
taxable Income
$468,550.00
refund Or Due Amount
$95,677.25
refund Or Due Direction
Balance Due
Step-by-Step Solution
TAX FORMULA — Prudence Huntington (SINGLE) GROSS INCOME Wages: $321,700.00 Interest Income: $5,250.00 Ordinary Dividends: $3,100.00 Business Income: $169,000.00 Capital Gain: $18,500.00 = Gross Income: $517,550.00 − Above-Line Deductions: $7,800.00 = AGI: $509,750.00 DEDUCTIONS Standard Deduction (single): $14,600.00 Itemized Deductions: $41,200.00 Deduction Used: $41,200.00 (itemized) = Taxable Income: $468,550.00 TAX CALCULATION Ordinary Taxable Income: $447,200.00 Ordinary Tax: $126,894.75 LTCG + Qualified Div: $21,350.00 LTCG Tax: $3,202.50 − Credits: $0.00 = Tax Liability: $130,097.25 − Taxes Withheld: $34,420.00 = Tax Due: $95,677.25