Solutions to Appendix E, “Comprehensive Tax Return Problems”

To this is added the self-employment tax of $8,687 (see Schedule SE) for a total amount due of $18,008. As the Johnsons had paid in $21,250 [$150 overpayment for 2011 + $5,100 Sheri’s withholdings + $16,000 quarterly estimated tax payments], the overpayment of $3,242 ($21,250 – $18,008) is applied towards their 2013 tax liability. ................
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