Question

Part II - Problems - 20% Tiger, age 32, files as a single taxpayer. He is employed at a monthly salary of $2,550. He claims no dependents. His employer withheld $2,600 from his wages for income taxes for 12 months of work. Compute Tiger's taxable income and income tax due to or from the IRS.

2018

Answer 1

Compute taxable income as follows

Particulars	Amount	Amount
Gross Income ($2,550 × 12 months)		$30,600
Deduct: For AGI deductions		$0
Adjusted gross income (AGI)		$30,600
Deduct: Greater amount of
Standard deduction in 2018 - Single or	$12,000
Itemized deduction	$0
Greater of the above two items		$12,000
Deduct: Qualified business income (QBI)		$0
Taxable income		$18,600

Compute taxable income and net tax due or refund as follows

Particulars	Amount
Tax on taxable Income   ($952.50 + (($18,600 − $9,525) × 12%))	$2,042
Deduct: Federal income tax withheld	$2,600
Federal income tax refund	($558)