Rachel, 28 years old, is single and has no dependents. In 20…
Rachel, 28 years old, is single and has no dependents. In 2024, Rachel had the following items of income and expense: Item Amount (in $) Salary 60,000 Qualified business income 15,000 Municipal bond interest income 300 Short-term capital loss (500) Long-term capital gain 1,500 Student loan interest (2,700) Traditional IRA Contribution (3,500) Total itemized deductions (12,000) The qualified business income is derived from an ownership interest in her family’s S-Corporation. The income is not subject to self-employment taxes. Rachel’s employers withheld $6,000 in federal income taxes from her paychecks. What is Rachel’s tax due or tax refund? (Link to tax rate schedule Appendix C_2024.pdf). Show all your work.
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