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11. Suppose Jim is head of household and earned $94,620 in wages last year. He received $1980 in interest from savings account. If he contributed
11. Suppose Jim is head of household and earned $94,620 in wages last year. He received $1980 in interest from savings account. If he contributed $2500 in a tax-deferred retirement plan. Jim is entitled to two $3650 exemptions for himself and one child and $8350 in deductions A) What is Jim's gross income? B) What is Jim's adjusted gross income? C) What is Jim's taxable income? D) Compute the income taxes owed using the table on the next page. E) Compute Jim's FICA taxes. 7.65% on first $106,800 of income from wages 1.45% on any income from wages in excess of $106,800 F) What is Jim's overall tax rate? Round to the percent to two decimals
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