Hannah contributed $300 per month into her retirement account in pre-tax dollars during the last tax year.
Question:
a. What would her taxable income have been had she contributed to the account in after-tax dollars?
b. Use the tax tables below to calculate her tax in both the pre-tax and after-tax contribution situations.
c. How much did Hannah save in taxes during that year?
Transcribed Image Text:
If line 43 If line 43 And you are At ButSingle Married Married HeadtBut Single Maried Married Head sepa- house- least less jointly sepahouse- than Trately hold Your tax is_ 75,000 72,000 72,050 14,350 0,694 14,539 13069 75,000 75,050 15,100 11444 15,379 13,819 72,050 72,100 14,363 10,706 14,553 13,0875,050 75,100 15113 1456 15,393 13,831 72,100 72,150 14,375 10,719 14,567 13,09475,100 75,150 15125 1469 15,407 13,844 72,150 72,200 14,388 0,731 14,581 13,106 75,150 75,200 15,138 48 15,421 13,856 72,200 72,250 14,400 10,744 14,595 13.119 75,200 75,25015,150 11.494 15,435 13,869 72,250 72,300 14,413 10,756 14,609 13.131 75,250 75,300 5163 1506 15,449 13,881 72,300 72,350 14,425 10,769 14,623 13.144 75,300 75,350 15,175 11.519 15,463 13,894 72,350 72,400 14,438 10,781 14.637 13,156 75350 75,400 15,18853 5,477 13,906 72,400 72450| 14,450 10,794 14.651 13.169||75,400 75,450| 15.200 11,544 15,491 13.919 72,450 72,500 14.463 086 14,665 13.181 75,450 75,500 15.213 11.556 15,505 13,931 72,500 72,550 14475 10,819 14.679 13,194 75,500 75,550 15,225 11,5695519 13,944 72,550 72,600 14,488 10,831 4,693 13206 75,550 75,600 15,23858 5,533 13,956 72,600 72,650 14,500 10,844 14.707 13,219 75,600 75,650 15.250 11,594 15,547 13,969 72,650 72,700 14,513 10,856 14.721 13.23 75,650 75,700 15263 1606 15,561 13.981 72,700 72,750 14,525 10,869 14,735 13.244 75,700 75,750 15,27569 15,575 13,994 72,150 72,800 14,538 10.881 4,749 13256 75,750 75,800 15.288 63 5,589 14,006 72,800 72,850 14,550 10,894 14,763 13,269 75,800 75,850 15,300 11,644 15,603 14,019 72850 72,900 14,563 10,906 14,777 13.281 75,850 75,90015313 11.656 15,617 14,031 72.900 72950 14,575 10,919 14.791 13.294 75,900 75,950 15.325 11,669 15,631 14,044 72,950 73,000 14,588 10,931 14,805 13.306 75,950 76,000 15,338 68 15,645 14,056
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Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
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