Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5)

Hongtao is single and has a gross income of $89,000. His allowable deductions for adjusted gross income are $4,200, and his itemized deductions are $19,000. The standard deduction for 2018 is $12,000.

Round all amounts to the nearest dollar. Refer to the Tax Rate Schedules to answer the following questions.

a. Hangtao's taxable income is $ and his tax liability is $ for 2018.

Feedback

b. If Hongtao has $12,000 withheld from his salary during 2018 then Hongtao has a refund of $.

c. Assume the same facts as in part a and part b, except that Hongtao is married. His wife's salary is $30,000, and she has $2,000 withheld from her paycheck. They file jointly. The standard deduction for 2018 is $24,000. Their taxable income is $ and their tax liability is $ for 2018. They will of $.