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 corner! 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 bakery, which brought her gross monthly earnings to $3,050, and also opened up an IRA, to which she contributed $450 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $2,000 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $3,000, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jamie Lee's current tax liability 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 "O" for any unused categories, 2018 Tax Rates. Current Financial Situation Assets: Monthly Expenses Checking account $2,600 Rent obligation $325 Savings account 57.900 tis 5185 Onterest and last year $175 Food $180 Emergency fund savings account $4,000 Gasmaintenance $160 Umerest earned last year 560 Credit Card payment $0 $450 Savings allocation Contribution made fost your $450 Regular savings monthly $195 Car $4,000 Rainy day savings monthly $40 Liabilities: Entertainment: Student on $11,800 Cake decorating class $25 Credit Card balance 50 Movies with friends $45 interest paid last year $45 Income Gross monthly salary $3.050 IRA Dance 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) 0 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 $ 0 $ 0 $ $ 0 Estimated tax (based on 2018 tax tables) Less tax credits Plus other taxes 0 Equals total tax liability Less estimated withholding and payments Equals tax due (or refund)