ASSIGNMENT
Compute the gross income, adjusted gross income, and taxable income in the following situation. Use the exemptions and deductions in the table to the right. Explain how it was decided whether to itemize deductions or use the standard deduction.
A woman is single and earned wages of $61,100. She received $260 in interest from a savings account. She contributed $500 to a tax-deferred retirement plan. She had $2540 in itemized deductions from charitable contributions.
Her gross income is $0. (Simplify your answer.)
Tax Rate Single 10% up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction $6350 Exemption (per person) $4050
Use the marginal tax rates in the table below to compute the tax owed in the following situation.
Paul is a head of household with a taxable income of $82,000. He is entitled to an $8000 tax credit.
Tax Rate Head of Household 10% up to $13,350 15% up to $50,800 25% up to $131,200 28% up to $212,500 33% up to $416,700 35% up to $444,550 39.6% above $444,550 Standard deduction $9350 Exemption (per person) $4050
The tax owed is $ (Type an integer or a decimal.)
A woman is in the 10% tax bracket and claims the standard deduction. How much will her tax bill be reduced if she qualifies for a $1000 tax credit?
Her tax bill will be reduced by $1 . (Simplify your answer.)
Determine how much the following individual will save in taxes with the specified tax credits or deductions.
Rosa is in the 25% tax bracket and claims the standard deduction. How much will her tax bill be reduced if she makes a $700 contribution to charity?
Her tax bill will be reduced by $ . (Simplify your answer.)
Use the marginal tax rates in the table below to compute the tax owed in the following situation.
Marco is married filing separately with a taxable income of $67,500.
Tax Rate Married Filing Separately 10% up to $9325 15% up to $37,950 25% up to $76,550 28% up to $116,675 33% up to $208,350 35% up to $235,350 39.6% above $235,350 Standard deduction $6350 Exemption (per person) $4050
The tax owed is $11. (Simplify your answer. Round to the nearest dollar as needed.)
