Question

Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $2,800, and also opened up an IRA, to which she contributed $200 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $1,750 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $2,500, most of which was deposited into her regular savings account after paying off her credit card balance Estimate Jamie Lee's current tax liability by completing the form below. Use the 2016 values for standard deduction ($6,300) and personal exemption ($4,050). Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories urrent Financial Situation Assets: Checking account Savings account (Interest earned last year) Emergency fund savings Monthly Expenses $2,600 Rent obligation $7,400 Utilities $300 $160 $155 $135 $0 $150 Food $4,400 Gas/maintenance account (Interest earned last year) IRA balance Contribution made last year) Car Llabilitles: Student loan Credit card balance Interest pald last year) Income Gross monthly salary $100 $400 $200 $3,500 Credit card payment Savings allocation: Regular savings (monthly) Ralny day savings (monthly) Entertalnment: Cake decorating class Movles with friends $170 $50 $11,300 $0 $80 $55 $75 $2,800

Answer 1

• Gross income includes all kind of income earned or received by whatever name called.
  • In the current situation, jamie lee jackson's Gross income will be calculated as follows,   

Sr. No.	Particulars	Amount
1).	Total Annual Salary ($ 2,800 X 12 months)	$ 33,600
2).	Gift Received from Great Aunt	$ 1,750
3).	Interest Received on Saving Bank Account ($ 150 + $ 100)	$ 250
4)	Winning from Raffle prize	$2,500
	Total Gross Income	$ 38,100
Less:	ADJUSTMENTS TO INCOME
	Contribution to IRA (deductible as modified adjust gross income is below qualifyieng limit)	($ 200)
	Interest on Education loan (Assumed it is on education loan)	($ 80)
	Net Adjusted total income	$ 37,820
	Estimated tax (based on 2016 tax table) Refund Receivable	($198)