Answered step by step
Verified Expert Solution
Question
1 Approved Answer
action plan for tax planning(from the form above) What tax strategies will we utilize to pay every penny owe to the government, and not a
action plan for tax planning(from the form above)
What tax strategies will we utilize to pay every penny owe to the government, and not a penny more (for a given level of income of $50000/ year, just graduated from university ,single ) What strategies will take to reduce taxable income?
50.000 Includes: Wages, salaries, tips Investment/interest income bonus Education income in excess of expenses Excludes: Qualified retirement contributions (401k, 403b, not Roth's) Interest on US Savings bonds Total Gross Income 3,7 Traditional com 46,250 Adjusted Gross Income Excludes: Tuition & Fees and Student Loan interest Deduction ** IRA/SEP contributions (not Roth IRA) Medical Savings Account contributions Flexible Spending Account contributions Total Adjusted Gross Income 3,000 3,500 265 IRA cap 6000 Cap 3500 Cap 2650 39,485 970 Step 3: Determine Tax Liability for 2019 for Single (not HoH) 10% 9,700 12% 9,700 39,475 2.248 22% 39,475 84,200 24% 84,200 160,725 32% 160,725 204,100 35% 204,100 510,300 Total Tax Liability 3,218 Total Credits: Refundable: 0 15,000 Maximum 500 10,000 2,000 2,000 Step 4: Calculate Tax Due or Tax Refund Family Credits (non-refundable) Lifetime Learning Credit (non-refund.) Child Tax Credit (Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started