How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3126
Experience:  IRS licensed Enrolled Agent and tax instructor
62958156
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

. If the taxpayer has $ 33K in Wages, the $ 45K in Territory

This answer was rated:

. If the taxpayer has $ 33K in Wages, the $ 45K in Territory rights income on Sched D Line 11 (a pass thru from an S-Corp)and an $ 8K loss in rental real estate on Sched E for a total Income of $ 69K and a standard and exemption combined of $ 23300 and taxable income of $ 45, is it possible to only pay 363 in federal tax....I don't worry about a little tax but NO tax scares me to think my software is incorrect.....any thoughts?
Edit

emc011075 :

It is possible. His federal withholdings will be in box 2 of his w2. Most passive income on schedule D or E will not have taxes withheld. If he didn't pay any estimated taxes, it is very possible that his only withholdings are from his w2.

Customer:

I'm not concerned about what he paid in, I am concerned that $ 45K in taxable income produces a tax liability of only $ 363....the worksheet on Schedule D seems to not tax his $ 45K of Territory right income....he sold area rights to another air conditioning company

Customer:

I must drive to an appointment now....sorry I will pick this up again at 3 30 pm

emc011075 :

Sch D income is taxed at different, often much lower tax rate. To be sure, check the dividends and capital gain worksheet calculation. But it is not unusual, that Adjusted gross income driven mostly by passive income/loss produce very low taxable liability. Sch K1 should give an idea how the income is being treated.

emc011075 and 3 other Tax Specialists are ready to help you