Charlotte Taylor is 24 years old and single, lives in an apartment, and has no dependents. Last year (2018) she earned $54,500 as a sales assistant for Office Furniture Rentals; $6,990 of her wages was withheld for federal income taxes. In addition, she had interest income of $101.

The standard deduction in 2018 was $12,000 for single. Note that personal exemptions were suspended for 2018. Refer to Exhibit 3.3 for the appropriate tax rate schedule.

a. Estimate her taxable income. $

b. Estimate her tax liability. Round the answer to the nearest cent. Use unrounded values in later calculations. (Hint: Use the tax rate schedules given in Exhibit 3.3 to determine her tax liability.) $

c. Estimate her tax refund or tax owed. Enter tax owed, if any, as negative amount. Round the answer to the nearest cent. $

Exhibit 3.3:

Single
Taxable Income	Tax Rate
$0 - $9,525	10% of taxable income
$9,526-$38,700	$952.50 plus 12% of the amount over $38,700
$38,701 - $82,500	$4,453.50 plus 22% of the amount over $82,500