Question

Emily, who is single, has been offered a position as a city landscape consultant. The position pays $150,200 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Problem 4-31 Part-a (Algo) a. What is the amount of Emily's after-tax compensation (ignore payroll taxes)? Description Amount $ 0 (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Taxable income (6) Income tax liability After-tax compensation $ 0

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Answer 1

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Due to rounding off answer can be +/-$1: Answes is highlighted in yellow: As per tax year 2020: Solution: a) Particulars 1) Gross Income 2) For AGI Deduction 3) Adjusted Gross Income 4) Less: Standard Deduction - 2020 5) Taxable income 6) Income Tax Liability: 2020: 14605.50+(137800-85525)*24% 7) After Tax Compensation (150200-27152) Amount 150200 0 150200 -12400 137800 27152 123048 Amount 141000 0 141000 b)1 Particulars 1) Gross Income 2) For AGI Deduction 3) Adjusted Gross Income 4) Less: Standard Deduction - 2020 5) Taxable Income 6) Income Tax Liability: 2020: 14605.50+(128600-85525)* 24% 7) After Tax Compensation (141000+9200-24944) - 124001 128600 24944 125256