Ginger Howell has the following information for the current tax year.

Wages: $75,250

Amount withheld for federal income taxes:

$9,125

Interest on savings and checking accounts: $275

Investment income (dividends): $450

IRA contribution: $3,000

Itemized deductions (total): $10,500

Tax credits for: child care 400 (per eligible child); child tax $2,000 (per cligible child)

Filing Status: Head of Houschold

Ginger has two minor children, ages 10 and 8; both children are in after-school daycare Standard Deduction for the year is $18,000

Questions:

1. What is Ginger's Taxable Income?

2. What is Ginger's Total Tax liability: (a) before credits? (Use the 2018 Tax Tables available on Canvas!) (b)after credits?

3. Will Ginger have a Refund or Balance Due? How much? 4. What is Ginger's Marginal Tax rate?

5. What is Ginger's Average Tax rate?

6. What would Ginger's additional tax savings be if she puts $4,500 in her IRA instead of $3,000?