27.16 Programming Project: Time to Pay the Piper

Program Specifications Every year around April 15th people are expected to have their taxes filed. Some are early and some are late. There tax tables that are used to determine your tax bracket and how much you owe. Software is used to compute the taxes on each paycheck and by the IRS to verify that your filing is accurate. This program will calculate U.S. income tax owed given wages, taxable interest, unemployment compensation, status (single or married) and taxes withheld. Taxpayers are only allowed to use this short form if adjusted gross income (AGI) is less than $120000. Dollar amounts are displayed as integers with no comma separators. For example, cout << "Deduction: $" << deduction Note: this program is designed for incremental development. Complete each step and submit for grading before starting the next step. Only a portion of tests pass after each step but confirm progress.

You are expected to use your IDE environment to develop and test your program. You should only submit here when you are ready to see if you have made it to the next step. You can submit unlimited number of times. But there is a 5 minute time enforced between submissions. Please use that time or more time to think about the issue or next step, write and test your code.

Step 1 (2 pts). Input wages, taxable interest, unemployment compensation, status (1=single and 2=married) and taxes withheld as integers. Calculate and output AGI (wages + interest + unemployment). Output error message if AGI is above $120000 and the program stops with no additional output. Submit for grading to confirm two tests pass. Ex: If the input is:

20000 23 500 1 400 

The output is:

AGI: $20523 

Ex: If the input is:

120000 23 500 1 400 

The output is:

AGI: $120523 Error: Income too high to use this form 

Step 2 (3 pts). Identify deduction amount based on status: (1) Single=$12000 or (2) Married=$24000. Set status to 1 if not input as 1 or 2. Calculate taxable income (AGI - deduction). Set taxable income to zero if negative. Output deduction and taxable income. Submit for grading to confirm five tests pass. Ex: If the input is:

20000 23 500 1 400 

Ex: The additional output is:

AGI: $20523 Deduction: $12000 Taxable income: $8523 

Step 3 (3 pts). Calculate tax amount based on exemption and taxable income (see tables below). Tax amount should be stored as a double and rounded to the nearest whole number using round(). Submit for grading to confirm eight tests pass. Ex: If the input is:

20000 23 500 1 400 

Ex: The additional output is:

AGI: $20523 Deduction: $12000 Taxable income: $8523 Federal Tax: $852 

Income	Tax for Single Filers
$0 - $10000	10% of the income
$10001 - $40000	$1000 + 12% of the amount over $10000
$40001 - $85000	$4600 + 22% of the amount over $40000
over $85000	$14500 + 24% of the amount over $85000

Income	Tax for Married Filers
$0 - $20000	10% of the income
$20001 - $80000	$2000 + 12% of the amount over $20000
over $80000	$9200 + 22% of the amount over $80000

Step 4 (2 pts). Calculate amount of tax due (tax - withheld). If the amount due is negative the tax payer receives a refund. Output tax due or tax refund as positive values. Submit for grading to confirm all tests pass. Ex: If the input is:

80000 0 500 2 12000 

Ex: The additional output is:

AGI: $80500 Deduction: $24000 Taxable income: $56500 Federal tax: $6380 Tax refund: $5620