Jessie, age 53, is a single taxpayer. She earns a salary of $90,000. Her employer puts...
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Jessie, age 53, is a single taxpayer. She earns a salary of $90,000. Her employer puts $5,000 into a qualified pension plan on her behalf and Jessie puts $7,000 in her pension plan. Her employer provides all employees with group-term life insurance equal to their salary ($90,000). Jessie put $2,000 in her flexible benefits plan. Her allowable deductions for AGI total $4,200 and she has $10,100 of allowable itemized deductions. In addition, Jessie received interest income of $1,700 from Payne County municipal bonds. Jessie won $2,200 of cash and prizes when she went on the TV show Wheel of Fortune. Jessie had the following capital gains and losses: LTCG $10,000, LTCL $4,000, and a STCL $4,000. Determine Jessie's taxable income according to the tax return formula and then calculate income tax liability. Please show all calculations, including your capital gain/loss calculation, (list each item separately rather than grouping items together). You must write all lines of the tax return formula and label each number to receive credit. (30 points) Preferential Tax MFJ Single Rates 0% 0-$80,000 $0-$40,000 $80,001- $40,001- 15% $496,600 $441,450 20% $496,601+ $441,451+ Single Taxpayer Tax Rate Schedule If Taxable of the But Not Income is The Tax is Amount Over Over Over $0 $9,875 10% $0 ... $9,876 40,125 $987.50 + 12% $9,875 40,126 85,525 4,617.50 + 22% 40,125 85,526 163,300 14,605.50 + 24% 85,525 163,301 207,350 33,271.50 + 32% 163,300 207,351 518,400 47,367.50 + 35% 207,350 518,400 156,235 + 37% 518,400 Cost per $1,000 of Age Bracket Protection - annually Under 25 $0.60 25 to 29 .72 30 to 34 .96 35 to 39 1.08 40 to 44 1.20 45 to 49 1.80 50 to 54 2.76 55 to 59 5.16 60 to 64 7.92 65 to 69 15.24 70 and above 24.72 Jessie, age 53, is a single taxpayer. She earns a salary of $90,000. Her employer puts $5,000 into a qualified pension plan on her behalf and Jessie puts $7,000 in her pension plan. Her employer provides all employees with group-term life insurance equal to their salary ($90,000). Jessie put $2,000 in her flexible benefits plan. Her allowable deductions for AGI total $4,200 and she has $10,100 of allowable itemized deductions. In addition, Jessie received interest income of $1,700 from Payne County municipal bonds. Jessie won $2,200 of cash and prizes when she went on the TV show Wheel of Fortune. Jessie had the following capital gains and losses: LTCG $10,000, LTCL $4,000, and a STCL $4,000. Determine Jessie's taxable income according to the tax return formula and then calculate income tax liability. Please show all calculations, including your capital gain/loss calculation, (list each item separately rather than grouping items together). You must write all lines of the tax return formula and label each number to receive credit. (30 points) Preferential Tax MFJ Single Rates 0% 0-$80,000 $0-$40,000 $80,001- $40,001- 15% $496,600 $441,450 20% $496,601+ $441,451+ Single Taxpayer Tax Rate Schedule If Taxable of the But Not Income is The Tax is Amount Over Over Over $0 $9,875 10% $0 ... $9,876 40,125 $987.50 + 12% $9,875 40,126 85,525 4,617.50 + 22% 40,125 85,526 163,300 14,605.50 + 24% 85,525 163,301 207,350 33,271.50 + 32% 163,300 207,351 518,400 47,367.50 + 35% 207,350 518,400 156,235 + 37% 518,400 Cost per $1,000 of Age Bracket Protection - annually Under 25 $0.60 25 to 29 .72 30 to 34 .96 35 to 39 1.08 40 to 44 1.20 45 to 49 1.80 50 to 54 2.76 55 to 59 5.16 60 to 64 7.92 65 to 69 15.24 70 and above 24.72
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Jessie Total Income and Tax liability Income under the head Salary Gross Sala... View the full answer
Related Book For
Income Tax Fundamentals 2015
ISBN: 9781305177772
33rd edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller, Steven Gill
Posted Date:
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