Question

Tendai has AGI of $70,000 and has made the following payments. state income tax withholding 4,200. state sales tax paid 6,100. federal income tax withholding 8,000. social security tax withheld from wages 5,600. state gift tax 6,000. town real estate tax 9,000. excise tax on personal realty 1,000. calculate the deductible amount of taxes with Tendai's itemized deduction.

Answer 1

Tendai's AGI is -  $70,000

Gross income is an intermediate earnings figure before all expenses are included, and Net income is the residual amount of earnings after all expenses have been deducted from sales.

Taxes Paid by Tendai's :-

1. state income tax withholding - $4,200 ( withhold )
2. state sales tax - $6,100
3. federal income tax - $8,000 ( withhold )
4. social security tax - $5,600 ( withhold )
5. Real estate tax - $9,000
6. excise tax on personal realty - $1,000

Calculating Annual Net Income

Particular	Amount	Amount
Gross Income		$70,000
(Deduction Of Taxes / Expense )
state sales tax	$6,100
Real estate tax	$9,000
excise tax on personal realty	$1,000	$16,100
Net Income		$53,900

Rate to consider for tax payment :

FEDERAL TAX BRACKETS 2018 – 2019
Single Filers	Tax Rate
$0 – $9,525	10%
$9,526 – $38,700	12%
$38,701 – $82,500	22%
$82,501 – $157,500	24%
$157,501 – $200,000	32%
$200,001 – $500,000	35%
$500,001+	37%