Tony & Jeannie Nelson

Summary of Tax Return

2022
Description Amount Subtotal Totals
Salary & Wage Income 12,000
Net Income from Nelson Engineering 360,950
Net Income from Jeannie Art 19,925
Interest Income 1,400
S/T Capital Gains (4,000)
Other Ordinary Income
Ordinary Income 390,275
L/T Capital Gains 28% (140)
L/T Capital Gains 25% 36,250
L/T Capital Gains 0/15/20 600
Other Income, if any
Total Gross Income 426,985
Adjustments (deductions FOR AGI):
Health Insurance Premium 8,800
Self Employment tax-Jeannie 2,815
Self Employment tax-Nelson 51,008
Total Adjustments FOR AGI 62,623
Adjusted Gross Income 364,362
Itemized or Standard Deduction 86,100
Qualified Business Deduction 110,500
Total Deductions FROM AGI 196,600
Taxable Income 167,762

Ordinary Taxable Income 131,052

L/T Capital Gains 28% (140)
L/T Capital Gains 25% 36,250
L/T Capital Gains 0/15/20 600
Taxable Income 167,762

Tax on Ordinary Income 18,253

Tax on LTCG 28% - 39
Tax on LTCG 25% 9,063
Tax on LTCG 0/15/20 120
Tax on Taxable Income 27,397
Other Taxes:

Net Investment Income Tax 1,955

Self-Employment Tax 55,797
Additional Medicare Tax 3,274
Total Other Taxes 61,026
Total Tax 88,423

Credits:
Child Tax Credit 2,100
American Opportunity Tax Credit 1,000

Total Credits 3,100

Prepayments 84,000
Total Credits & Prepayments 87,100

Amount Due (Refund) 1,323

e Nelson
x Return

Explanation/Computations as needed
 Tony & Jeannie Nelson
Nelson Engineering
2022
Item Description Amount Explanation/Computations as needed
Revenue 647,000
Cost of Goods Sold
Gross Profit 647,000
Business Expenses:
Wages 221,000
Rent Expense 36,000
Taxes 18,000 payroll tax
Utilities
Depreciation 4,500
Interest 1,250 2500/2 years
Travel 800 airticket 480+hotel 160*2
Entertainment
Meals 700
Other Expenses 3,800
Total Expenses 286,050
Net Business Taxable Income (Loss) 360,950

Self Employment Tax Deduction

omputations as needed

otel 160*2
 Tony & Jeannie Nelson
Jeannie Abstracts
2022
Item Description Amount Explanation/Computations as needed
Revenue 42,000 Paintings 24000+18000
Cost of Goods Sold 13,175 425*31
Gross Profit 28,825
Business Expenses:
Wages
Taxes 1,900 studio
Utilities 3,400 studio
Depreciation 3,600 studio
Other Expenses
Total Expenses 8,900
Net Business Taxable Income (Loss) 19,925

Self Employment Tax Deduction

mputations as needed
+18000
 Tony & Jeannie Nelson
Sale of Assets
2022
Short Term Long Term Capital Gain/(Loss)
Net Gain Capital
Items Proceeds Cost (Loss) Gain/(Loss) 28%
a York Co 20,000 14,000 6,000
b New Co. 17,000 14,000 3,000
c City Co. 14,000 19,500 (5,500)
d Antique 28,000 26,500 1,500
e 1250 - land 62,000 23,000 39,000
f Space Explore 31,500 18,000 13,500
g Carryover (14,000)
Total Gain / (Losses) Steps 1 & 2 43,500 - -
Netting Steps and Adjustments:
York Co
New Co.
City Co. (5,500)
Antique 1,500
1250 - land
Space Explorer 3,780
(3,920)

NET GAIN (LOSSES) 43,500 (4,000) (140)

Long Term Capital Gain/(Loss)
25% 0/15/20 Explanation/Computations as needed

Cost=6500+15000/2=14000
STCL

- -

1,500
600

34,750

36,250 600 NET GAIN (LOSSES) to Summary sheet

 Tony & Jeannie Nelson
Itemized Deductions
2022
Item Description Amount Subtotal Total Explanation/Computations as needed
Medical Deduction
Eye Surgery 6,000
Braces for son 3,200
Copays 2,600
Over-the-counter 700
Insurance premiums 8,800
Total Expenses 21,300

Medical Expense Deductible 11,800

Taxes Paid
Property Tax 7,600

Total Expenses 7,600

Tax Expense Deductible 7,600

Interest Paid
Mortgage Interest 16,200

Total Expenses 16,200

Interest Expense Deductible 16,200

Charitable Contributions

Total Expenses -

Charitable Contribution Deductible

Other Itemized Deductions

Noncash Contributions 50,500 Donated parcel 92000-41500

Total Expenses 50,500

Other Deductible 50,500

Total Itemized Deductions 86,100

Standard Deduction 25,900

Amount Deductible 86,100

anation/Computations as needed
arcel 92000-41500
 Tony & Jeannie Nelson
Qualified Business Deduction Calculation
2022

Explanation/Computation
Qualified business income (QBI) from Nelson Engineering 647,000
W-2 Wages for this activity 221,000 given
Qualified Property (investment) for this activity

Qualified business income (QBI) from Jeannie Abstract 28,825

W-2 Wages for this activity
Qualified Property (investment) for this activity

Taxable Income before QBI Deduction 675,825

Wage based Limitation Taxable income before QBI and pref rates
threshold

Qualified Business Income Deduction:

Lesser of: QBI Calculation
a) QBI from Nelson Engineering 647,000 129,400
QBI from Jeannie Abstract 28,825 5,765
Rate 20%
Total QBI 135,165
or Taxable Income Limitation
b) Taxable Income before QBI Deduction 675,825
Capital gains
Excess of income over capital gains 675,825
Rate 20%
135,165

Wage Based Limitation on QBI:

Applies Yes or No Yes
If Yes then compute below:
Greater of:
Nelson
a) 50% of wages 110,500
b) 25% of wages + 2.5% of qualified propert 55,250
110,500
Greater of:
Jeannie
 a) 50% of wages -
b) 25% of wages + 2.5% of qualified propert -

Amount of QBI Deduction 110,500

xplanation/Computations as needed

ven
 Tony & Jeannie Nelson
Tax Calculations
2022

Income TAX Explanation/Computations as nee

Tax on Ordinary Income $ 131,052
Bracket 190,750 32,580.00
Excess -$ 59,698
Marginal Rate % 24%
Tax on Excess -$ 14,327.00
Total Tax on Ordinary Income 18,253

L/T Capital Gain 28% Max - 140

Capital Gains Rate 28%
Capital Gains Tax - 39

L/T Capital Gain 25% Max 36,250

Capital Gains Rate 25%
Capital Gains Tax 9,063

L/T Capital Gain 0/15/20% 600

Capital Gains Rate 20%
Capital Gains Tax 120

Net Investment Income 51,447

NIIT Rate 3.8%
Net Investment Income Tax 1,955

Self Employment Tax

Total Income Nelson Eng 360,950.00
Taxable Computation. 92.35%
Self Employment Taxable 333,337.33

Social Security Taxable 358687.4

Rate 12.4%
Social Security Tax 44,477.24

Medicare Taxable 358687.4

Rate 2.9%
Medicare Tax 10,401.93
Self Employment Tony 54,879.17

Total Income Jeannie Abstract 19,925.00

Taxable Computation. 92.35%
Self Employment Taxable 18,401

Social Security Taxable 6000

Rate 12.4%
Social Security Tax 744

Medicare Taxable 6000

Rate 2.9%
Medicare Tax 174
Self Employment Jeannie 918
Total Self Employment Tax 55,797

Extra Medicare
Tony SE Taxable 333,337
Jeannie SE Taxable 18,401
Jeannie Salary 12,000 ?
Total S E Taxable 363,738
Extra Medicare MFJ Floor
Amount Subject to extra 363,738
Extra Rate 0.9%
Extra Medicare Tax 3,274
ation/Computations as needed
?
 Tony & Jeannie Nelson
Tax Credits
2022
Child & Dependent Tax Credit Explanation/Computations as neede
# of children eligible for credit 1 one under 17
credit per child amount 2,000
# of other dependents 2 2 child 17+19
Per other dependent credit amount 500
Total Child Tax Credit before phase-out 3,000

Adjusted Gross Income (AGI) 364,362

Phase-out threshhold 170,000
AGI In Excess of threshold 194,362
Credit Phase-out Increment
Amount of Credit Phase-out
Net Child Tax Credit 3,000

Total Net Child Tax Credit on Return 2,100

American Opportunity Tax Credit

Amount of eligible expenses 2,500
Amount of credit before phase-out 1,000

Adjusted Gross Income (AGI) 364,362

Phase-out threshhold
AGI In Excess of threshold 364,362
Phase-out range for MFJ
Phase-out %
Amount of Credit Phase-out
Net American Opportunity Tax Credit 1,000
Explanation/Computations as needed
one under 17

2 child 17+19