CH. 4PLEASE HELP. HAVE NO IDEA
Continuing Case 20. Income Tax Estimation Jamie Lee Jackson, age 26. is in her last semester of college and is waiting for graduation day that is lust around the corner! It is the time of year again when Jamie Lee mustle her annual federal income taxes. Last year, she received an Increase in salary from the bakery, which brought her gross monthly earnings to $3.000, and also opened up an IRA to which she contributed $400 last year. Her savings accounts earn 2% Interest per year, and she also had received an unexpected $1.950 gift from her great aunt. Jamie was also lucky enough last year to win a rate prize of $2.900, most of which was deposited into her regular savings account after paying off her credit card balance Estimate Jamie Lee's current taxabity by completing the form below. Use the 2018 values for standard deduction ($12.000). Each answer must have a value for the assignment to be complete. Enter for any unused categories, 2018 Tax Rates $320 $180 $175 $155 $0 Current Financial Situation Assets: Monthly Expenses: Checking account $2600 Rent obligation Savings account $7,800 Utilities Interest earned last 120 Food vean Emergency fund $4,800 Gas/maintenance savings account interest earned last $120 Credit card payment yoan IRA balance $440 Savings allocation: (Contribution made last $400 Regular Savings yean monthly $3,900 Rainy day savings (monthly Liabilities: Entertainment: Student loan $11.700 Cake decorating class Credit card balance $0 Movies with friends interest paid last year) $40 Income: Gross monthly salary $3,000 $190 $35 $20 $40 Estimated Income Tax Gross income (wages, salary, investment income, and other ordinary income) Less adjustments to income (see current tax regulations) Equals adjusted gross income Less standard deduction (use 2018 amounts) Itemized deductions (whichever total is larger) Medical expenses (exceeding 10% of AGI) State/local income and property taxes Mortgage, home equity loan interest Contributions Casualty and theft losses Moving, job-related, and miscellaneaous expenses (exceeding 2% of AGI) Total itemized deductions Larger of standard or itemized deductions Equals taxable income Estimated tax (based on 2018 tax tables) Less tax credits Plus other taxes Equals total tax liability Less estimated withholding and payments Equals tax due (or refund) TAX RATES Use your taxable income in conjunction with the appropriate tax table or tax schedule. For several years previous to 1987, there were 14 tax rates, ranging from 11 to 50 percent. For 2018, the seven-rate system for federal income tax was as follows: Single Taxpayers Married Taxpayers Filing Jointly Head of Households Rate on Taxable income 10% Up to $13,600 Up to $19,050 $19,050-$77,400 $77,400-$165,000 24 Up to $9,525 $9,525 $38,700 $38,700-$82,500 $82,500-$157,500 $157,500-$200,000 $200,000-$500,000 $500,000+ $165,000-$315.000 $13,600-$51,800 $51,800-$82,500 $82,500-$157,500 $157,500-$200,000 $200,000-$500,000 $500,000+ $315,000-$400,000 $400,000-$600,000 $600,000 +
