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 just around the comer! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bekery, which brought her gross monthly earnings to $2,550, and also opened up an IRA, to which she contributed $300 last year. Her savings accounts cam 2% interest per year, and she also had received an unexpected $1,500 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $2,000, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jernie Lee's current tax liability by completing the form below. Use the 2018 values for standerd deduction ($12,000). Each answer must have a value for the assignment to be complete. Enter "C" for any unused categories. 2018 Tax Rates. Current Financial Situation Assets Checking count Sewing count Monthly Expens $2,250 Rent obligation $275 $8,000 Ulti $135 Interest med last year) $125 Food $130 Emergency fund savings account $3.900 Gemeintenance 5113 (Interestsamlasty) $75 Dred and payment $31 IRA balanc $350 Savings allocation: (Contribution made last year $300 Regular sevings (monthly $175 C $3,000 Reiny day savings (monly $25 Liabilities: Entertainment Student $10,800 Cake decorating class $35 Credit card balance So Meses with friends $50 Interest paid last year) $55 Income: Grossmoniy y $2,550 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) or 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 rates) Less tax credits Plus other taxes Equals total tax liability Less estimated withholding and payments Equals tax due (or refund)