Carlota had $129,000 of income from wages and $1,250 of taxable interest. Carlota also made contributions of $2,800 to a tax-deferred retirement account. Carlota has 0 dependents and files as single.

What is Carlota's  total income?

What is Carlota's adjusted gross income?

For Carlota's filing status, the standard deduction is $12,000. What is Carlota's taxable income?

Use the 2018 tax table to find the income tax for Carlota filing as single.  Round to the nearest dollar.

 

 

2.  Rajesh is filing single and he has an adjusted gross income (AGI) of $81,000 for the 2018 tax year. He qualifies for the standard deduction of $12,000. Use the following 2018 Federal tax rate schedule to calculate his 2018 Federal income tax.

If your filing status is single;

and taxable income is more than:	but not over:	your tax is:
$ 0	$9,525	10% OF the taxable income
$9,525	$38,700	$952.50 plus 12% of the excess over $9,525
$38,700	$82,500	$4,453.50 plus 22% of the excess over $38,700
$82,500	$157,500	$14,089.50 plus 24% of the excess over $82,500
$157,500	$200,000	$32,089.50 plus 32% of the excess over $157,500
$200,000	$500,000	$45,689.50 plus 35% of the excess over $200,000
$500,000	_______	$150,689.50 plus 37% OF THE AMOUNT OVER $500,000

What is Rajesh's effective tax rate?

  

3. Jaylen and Zan are married, filing jointly. Their total adjusted gross income was $80,000 and they qualified for the standard deduction of $24,000. Use the following 2018 tax rate schedule to calculate their 2018 federal income tax.

If your filing status is married, filing jointly or surviving spouses;

and taxable income is more than:	but not over:	your tax is:
$ 0	$19,050	10% OF the taxable income
$19,050	$77,400	$1905 plus 12% of the excess over $19,050
$77,400	$165,000	$8907 plus 22% of the excess over $77,400
$165,000	$315,000	$28,179 plus 24% of the excess over $165,000
$315,000	$400,000	$64,179 plus 32% of the excess over $315,000
$400,000	$600,000	$91,379 plus 35% of the excess over $400,000
$600,000	_______	$161,379 plus 37% OF THE AMOUNT OVER $600,000

Jaylen and Zan's 2018 Federal income tax is: $
(Round to the nearest dollar.)

What is Jaylen and Zan's effective tax rate? [Tax paid divided by taxable income]

%
(Write as a percent, rounded to one decimal place.)

 

4. Use the 2015 tax table to find the income tax for a taxpayer with taxable income of $65,110 filing as married filing separately.

Use the 2015 tax table to find the income tax for a taxpayer with taxable income of $31,132 filing as head of household.
 

 

5. Use the 2015 tax table to find the income tax for a taxpayer with taxable income of $35,157 filing as head of household.

Use the 2015 tax table to find the income tax for a taxpayer with taxable income of $57,697 filing as married filing jointly.

6. Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for various applications such as for advertisements, brochures, magazines, and corporate reports.

 

SOURCE: United States. Department of Labor. "Graphic Designers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016.

 

Employee's Rates	Matching Rates Paid bythe Employer	Self-Employed Rates
7.65% on first $118,500 of income 1.45% on income above $118,500	7.65% on first $118,500 paid in wages 1.45% on wages above $118,500	13.3% on first $118,500 of net earnings 2.9% on earnings above $118,500
1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.

Suppose a graphic designer earns $43,000 and is not self-employed. How much will the designer have to pay in FICA taxes?

$

 

7. 

Employee's Rates	Matching Rates Paid by the Employer	Self-Employed Rates
7.65% on first $118,500 of income 1.45% on income above $118,500	7.65% on first $118,500 paid in wages 1.45% on wages above $118,500	13.3% on first $118,500 of net earnings 2.9% on earnings above $118,500
1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.

Suppose Jonah has $209,900 of income from work and is self-employed. How much will Jonah have to pay in FICA taxes?

$

 

8. Determine the amount of taxes owed or the refund that would result in this situation:

• Filing Status: Married filing jointly
• Gross Income: $125,000
• Adjustments: $6,900
• Itemized Deductions: $10,400
• Credits and Withholdings: $15,000
  
  a. What is their adjusted gross income (AGI)?
  
  
  c. Use the simplified 2018 tax tables to determine their taxable income.  *Remember to subtract the deduction to determine the taxable income.
  
  d. Determine their tax using the 2018 tax table  
  
  e. What is their final tax refund or amount still owed (if they owe enter the number as a negative)?