Mike Webb, married co Nancy Webb, is employed by a large pharmaceutical company and earns a salary..
Mike Webb, married co Nancy Webb, is industrious by a large pharmaceutical concourse and earns a hire. In attention, Mike is an entrepreneur and has nvo feeble callinges on the cause, twain of which act as sole proprietorships. One is a productive consulting calling where Mike provides financia l and departure direction to pharmacists . The other involves the manufacture of Christmas novelties in China, selling the products in benefaction shops in the U.S. This calling is struggling . However, Mike feels the Christmas novelty calling has excellent potentia l. Mike reports the subjoined for 2019:
The Webbs feel two hanging outcome, ages 13 and 11,
and pay cadet thrift expenses of $4,000 per year for each $21,000
child. Nancy is nor industrious, bur is a full-rime student
(all of 2019 ) at State University, majoring in Accounting
. Federal allowance tax withhe ld from hire Estimated
taxes remunerated for 2019
For 2018, Mike and Nancy's AGI was $175,000 and their actual federal allowance tax amenability was $29,000. a. Compute the Webbs stated federal allowance tax amenability for 2019, including selfemployment taxes.
b. Are the Webbs material to AMT in 2019, stiff they feel additional AMT preferences of $70,000? c. Are the Webbs due a pay-back for 2019?
d. Are the Webbs material to any underpayment penalties for 2019?