1. Consider the 2020 information for a single taxpayer without children: Wage Income Tax free intertest income Medical expenses paid Sate income taxes paid Local property taxes paid Mortgage Interest paid Charitbale contributions Situation A 105,000 2,200 450 3,800 4,000 5,100 2,900 Stuation B 85,000 2200 7,950 3,800 0 0 480 a. What is the total taxes owed under each scenario? b. In each scenario, what is the effective tax rate based on Taxable income? c. In each scenario, what is the marginal tax rate? 2. Vera, Single, has no children or dependents. Wage Income 128,000 Sold Apple stock purchased 10 years ago: Proceeds in 2020 60.000 Cost 10 years ago 10,000 Life insurance proceeds received 88.000 Paid Medical costs out of pocket 4.980 Paid state income taxes 9,870 Paid Local propery taxes 13,500 Paid mortage interest 13.400 Made charitable contributions in cash 4.490 Paid 3700 in tax preparation fees 3.700 b a. What was the tax owed in 2020? How much did this taxpayer save due to the lower rate on capital gains and dividends? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates c. What would the tax owed be if the apple stock was sold for $90000 instead of 4. How much did this taxpayer save due to the lower rate on capital gains and dividends? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates 1. Consider the 2020 information for a single taxpayer without children: Wage Income Tax free intertest income Medical expenses paid Sate income taxes paid Local property taxes paid Mortgage Interest paid Charitbale contributions Situation A 105,000 2,200 450 3,800 4,000 5,100 2,900 Stuation B 85,000 2200 7,950 3,800 0 0 480 a. What is the total taxes owed under each scenario? b. In each scenario, what is the effective tax rate based on Taxable income? c. In each scenario, what is the marginal tax rate? 2. Vera, Single, has no children or dependents. Wage Income 128,000 Sold Apple stock purchased 10 years ago: Proceeds in 2020 60.000 Cost 10 years ago 10,000 Life insurance proceeds received 88.000 Paid Medical costs out of pocket 4.980 Paid state income taxes 9,870 Paid Local propery taxes 13,500 Paid mortage interest 13.400 Made charitable contributions in cash 4.490 Paid 3700 in tax preparation fees 3.700 b a. What was the tax owed in 2020? How much did this taxpayer save due to the lower rate on capital gains and dividends? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates c. What would the tax owed be if the apple stock was sold for $90000 instead of 4. How much did this taxpayer save due to the lower rate on capital gains and dividends? Show how this savings is computed, reconciling the amount saved using the appropriate tax rates
