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Homework Problem I Dwayne Johnson is single and living alone. He had income and expenditures for the year as follows. Salary income (from W-2) $87,000
Homework Problem I Dwayne Johnson is single and living alone. He had income and expenditures for the year as follows. Salary income (from W-2) $87,000 Interest income from: Bank account 1,400 Maricopa County bonds 3,000 Inheritance from grandparent 20,000 Contribution to Roth I.R.A. 5,000 Interest expense on student loan 2,000 Potential Itemized Deductions: Interest expense on home mortgage Interest expense on car loan Interest expense on credit cards Property taxes paid (car and home) Charitable contributions Federal income tax withhold State income tax withheld 6,000 1,100 300 2,700 3,000 12,000 2,000 Compute the amount of: a) taxable income, b) income taxes, and c) amount of tax to be paid (refunded) Note: It is not acceptable to submit this page as homework. Prepare answer, in good form, on a separate sheet. IRS ACC 212 / 240 Inocne Taxes - Page 16
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