Continuing Case 20. Income Tax Estimation Jamle Lee Jackson, age 26 , is in her last semester of college and is walting 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 bakery, which brought her gross monthly earnings to $2,550, and also opened up an IRA, to which she contributed $300 last year. Her lucky enough last year to win a raffle prear, and she also had received an unexpected $1,500 gift from her great aunt. Jamie woss also 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 " 0 . for anv unused categories. 2018 Tax Rates 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 largen) Medical expenses (exceeding 10% of AGI) Stateilocal income and property taxes Mortgage, home equity loan interest Contributions Casualty and theft losses Moving, job-related, and miscellaneacus 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 fotal tax liability Less estimated withholding and payments Equals tax due (or refund)