Question

that tax year 8. 1:3-56 Gary earned $97,000 as an executive. Gary, who is single, supported his half sister, who lives in a nursing home. Gary received the following interest: $400 on City of Los Angeles bonds, $200 on a money market account, and $2,100 on a loan made to his brother. Gary spent one week serving on a jury and received $50. Gary received a refund of federal income taxes withheld during the prior year of $1,200 and a state income tax refund of $140. Gary had itemized deductions last year of $18,000 which included $1,000 of state income taxes. Gary received qualified dividends from Ace Corporation of $1,000 and from Tray Corporation of $1,400. Gary's itemized deductions equal $19,000, and withholding for federal income taxes is $14,000. Compute Gary's tax due or refund due.

Answer 1

ANS Amount 97000 Particulars salary. interest on money market account interest on loan to brother. $ 200 $ 2100 Fee for jury duty. $50 Refund of State income tax $ 140 Dividend on Ace Stock $1000 $1400 Dividend on Toy Stock Adiusted gross income 101 890 8100 Exemptions 405082 itemized deductions 19000 Taxable income 101890-8100 - 19000 74790

14196-25 Gross tax witheld income tax 14000 net tax Refund 196.25. Note taking 2017 Fox Rates Gross tax Dividend tax - 2400X15% - 360 17 Federal income tax: (74790-2400) 72390 5246-25+25), X(72390-37950) = 13836.25 Gross tax = 13865+25 +360 = 14196.25