Continuing Case 9. 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 $3,150, and also opened up an IRA, to which she contributed $200 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $2,100 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $3,200, most of which was deposited into her regular savings account after paying off her credit card balance Estimate Jamie Lee's current tax Hability by completing the form below. Use standard deduction ($6,300) and personal exemption ($4.050). Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories Use 2017 tax rates Current Financial Situation Monthly Expenses: Checking account $2,950 Rent obligation $335 Savings account 58, 100 Utilities $195 (Interest earned last year) $185. Food Emergency fund savings account $5,100 Gas/maintenance $170 (Interest earned last year) $7e credit card payment TRA balance $470 Savings allocation (Contribution made last year $200 Regular savings (monthly $160 $4,200 Rainy day savings (monthly) Liabilities: Entertainment $12,000 cake decorating class $35 Credit card balance 50 Movies with friends Interest paid last year) 555 Incone: Assets: $190 so $50 Car Student loan 555 $50 Car Liabilities: Student loan Credit card balance (Interest paid last year) Income: Gross monthly salary $4,200 Rainy day savings (monthly) Entertainment: $12,000 Cake decorating class $0 Movies with friends $55 $35 $55 $3,150 0 w 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 2016 amounts) or ltemized deductions (whichever total is larger) Itemized deductions (whichever total is larger) Medical expenses (exceeding 10% of AGI) State/local income and property taxes Mortgage home equilty loan interest Contributions Casualty and theft losses Moving Job-related and miscellanea ous expenses (exceeding 2% of AGI) Total itemized deductions Larger of standard or itemized deductions Les personal exemptions: Fountaxable income 5 0 5 0 $ 0 Tendeu uuuuluuis VIIIEVE LULZI IS diye 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 Less personal exemptions Equals taxable income Estimated tax Less tax credits Plus other taxes Equals total tax liability Less estimated withholding and payments Equals tax due (or refund) $ 0 HA 0