(a)
Total income - $1,20,000
State and local income taxes - $6,000
State and local property taxes -$6,000
Home mortgage interest -$12,000
Contribution to 401(k) retirement account - $8,000
Contribution to individual retirement account - $4,000
Gross total income $ 1,62,000
(b)
Gross total income - $ 1,62,000
less: Deductions
Standard deduction for married couple - ($ 24,000)
Child tax credit - ($ 4,000)
$ 1,34,000
(c) Tax
0 - 30,000 - 3,000
30,000 - 70,000 - 8,000
70,000 - 1,20,000 - 15,000
$26,000
1. The Millers, a family of four (with two young child) filing a joint tax return,...
The Millers, a family of three filing joint returns, have the following information to prepare their federal income tax. Use the current federal tax forms (available at the local IRS office) to make your computation. Salaries 45,000 Interest income, corporate bonds 1,000 Interest income, municipal bonds ( issued in 1984 1,500 State and Local income taxes 800 Real estate taxes 750 General sale taxes 750 Home mortgage interest 3,350 Credit card interest 500 Cash contributions to charities 250 Interest on...
750 4. The Millers, a family of three filing joint returns, have the following infor- mation to prepare their federal income tax. Use the current federal tax forms (available at the local IRS office) to make your computation. Salaries 45,000 Interest income, corporate bonds 1,000 Interest income, municipal bonds (issued in 1984) 1,500 State and local income taxes 800 Real estate taxes General sales taxes 750 Home mortgage interest 3,350 Credit card interest Cash contributions to charities 250 Interest on...
Please complete all
Chapter 4: Using Tax Concepts for Planning 1. Help the Sampsons estimate their Federal Income Contributions Act (FICA) tax, which consists of Social Security and Medicare taxes. For 2018, the FICA tax rate is 7.65% for annual incomes less than $128,400. $0 Gross Income FICA Tax Rate x FICA Tax 0.00 % $0.00 2. The Sampsons will use the standard deduction of $24,000 rather than itemize their deductions Help the Sampsons estimate their taxable income by filling...
owing chart shows the tax brockets and standard deductions for fing taxes in 2018 obtained from nups wwwhrblock.com/tax-centerirsitax brackets and rates what-are-the-tax-brockets and m s www.doucnoler.net/taxes/federal income tax cockets douchons and exemptions are no longer personal exemptions for tax year 2018, we are gong to assume a personal exemption of $2.000 (tre . Even though there amount of a child tax credit) for the sake of simplicity 2018 Tax Brackets 8. Kalyn is single and files as single. Her gross...
PROBLEMS 1:2-29 Computation of Tax. The following information relates to two married couples: Smiths Millers Salary (earned by one spouse) Taxable interest income Deductible IRA contribution Itemized deductions Withholding $95,000 1,000 5,500 20,000 8,500 $30,000 20 900 1,750 Compute the 2018 tax due or refund due for each couple. Assume that any restrictions on itemized deductions have been applied. Ignore credits. Truahle Iucous The following information relates to Tom, a single
1. Mr. Jones is a single person who makes $45,000 in 2019. This year she paid $2,000 in student loan interest and $3,600 to her 401(k) plan at work. Calculate the following A. Adjusted Gross Income. B. Assuming only standardized deductions available, what is his taxable income for 2019? C. Using 2019 tax brackets, what is his marginal federal tax rate? D. Total federal tax due. E. Average federal tax rate on taxable income. F. Calculate the FICA tax due....
Mr. Jones is a single person who makes $45,000 in 2019. This year she paid $2,000 in student loan interest and $3,600 to her 401(k) plan at work. Calculate the following Adjusted Gross Income. Assuming only standardized deductions available, what is his taxable income for 2019? Using 2019 tax brackets, what is his marginal federal tax rate? Total federal tax due. Average federal tax rate on taxable income. Calculate the FICA tax due. Assuming no state and city tax rate,...
Compute the 2018 CT tax liability using the info below. Assume married filing jointly. Age 66 W-2 income $85,000 Teachers pension( teachers retirement board)$15,000 social security $30,000 military pension $22,000 INTEREST: Bank $2,000 state of CT Municipal Bond $3,000 State of Massachusetts Municipal Bond $1,000 Common wealth of Puerto Rico tax exempt $5,000 U.S savings Bond $4,000 Loss on the sale of CT Municipal Bond ($2,000) Schedule C income (construction) $30,000 ADJUSTED GROSS INCOME $186,000 OTHER INFORMATION: R.E. taxes paid...
5. In Freedonia, the tax brackets works as follows. On the rst 20,000 pesos of taxable income, tax rate is 10%. On the portion of income from 20,000 to 50,000 pesos, the tax rate is 25%. On income above 50,000 pesos, the tax rate is 50%. In addition, each family has a 12,000 pesos deduction, and each child can claim 2,000 pesos of tax credit. (a) Martin has a wife and a kid, and the family gross income is 50,000...
The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of $68,000 for 2017. Determine their standard deduction, exemption, and child tax credit amounts, as well as their marginal and average tax rates assuming their filing status is married filing jointly.Assuming the Lees' filing status is married filing jointly, their standard deduction for the 2017 tax year is $nothing. (Round to the nearest dollar.) Click the following link for a standard...