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Gracie, 62 and single, earns a salary of $58,000. She put $1,200 in her flexible benefits plan. Gracie puts $5,000 in her pension plan and
Gracie, 62 and single, earns a salary of $58,000. She put $1,200 in her flexible benefits plan. Gracie puts $5,000 in her pension plan and her employer matches that amount. Her employer provides all employees with group-term life insurance equal to twice their salary. Her allowable deductions for AGI total $1,000 and she has $12,600 of allowable itemized deductions. In addition, Gracie received interest income of $6,200 from New Mexico state bonds. She won $4,000 from lottery tickets she purchased. Gracie had the following capital gains and losses: LTCG $14,000, LTCL $7,000, and a STCL $5,000. Determine Gracie's taxable income according to the tax return formula and then calculate income tax liability. Please show all calculations, including your capital gain/loss calculation, (list each item separately rather than grouping items together). You must write all lines of the tax return formula and label each number to receive credit. (30 points) 6 B I y A I x? X 12pt Paragraph Align right
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