CLIENT \#8: GAMAL \& EMIE Gamal and Emie are married. They have two children, aged 12 and 14. Four years ago, they moved and purchased a house in New Jersey for $878,000. They made a 20% down payment to avoid PMI. Last year they sold the Brooklyn apartment they used to live in. Gamal works in Pennsylvania; Emie works in New Jersey. Here's some info from the couple's W-2 forms: Gamal: Box \#2: 61928.36" Box \#5: 313510.08" Box \#12: E 22500.00" Emie: Box \#4: "5890.12" Emie does not contribute to a retirement plan through work. ADJSTMENTS Bank interest earned: $530.93 Profit from sale of apartment: $208,102.00 POSSIBLE DEDUCTIONS Mortgage interest on year \#4 of their mortgage: XXXXX Property tax paid: 2% of the current assessed value of their home, which is $980,000 Charitable contributions: $9,000 CREDITS Residential Energy credit: 26% of $15,000 Calculate Emie \& Gamal's effective tax rate, correct to the nearest hundredth of a percent. All adjustments and itemized deductions taken for federal income tax also apply for New Jersey and for Pennsylvania. Pennsylvania has a flat state income tax of 3.07%. The New Jersey tax bracket that applies to Emie is... For earnings between $40,000 and $75,000, you pay 5.525% plus $1492.50 CLIENT \#8: GAMAL \& EMIE Gamal and Emie are married. They have two children, aged 12 and 14. Four years ago, they moved and purchased a house in New Jersey for $878,000. They made a 20% down payment to avoid PMI. Last year they sold the Brooklyn apartment they used to live in. Gamal works in Pennsylvania; Emie works in New Jersey. Here's some info from the couple's W-2 forms: Gamal: Box \#2: 61928.36" Box \#5: 313510.08" Box \#12: E 22500.00" Emie: Box \#4: "5890.12" Emie does not contribute to a retirement plan through work. ADJSTMENTS Bank interest earned: $530.93 Profit from sale of apartment: $208,102.00 POSSIBLE DEDUCTIONS Mortgage interest on year \#4 of their mortgage: XXXXX Property tax paid: 2% of the current assessed value of their home, which is $980,000 Charitable contributions: $9,000 CREDITS Residential Energy credit: 26% of $15,000 Calculate Emie \& Gamal's effective tax rate, correct to the nearest hundredth of a percent. All adjustments and itemized deductions taken for federal income tax also apply for New Jersey and for Pennsylvania. Pennsylvania has a flat state income tax of 3.07%. The New Jersey tax bracket that applies to Emie is... For earnings between $40,000 and $75,000, you pay 5.525% plus $1492.50
