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I need help with questions 3 please Eric has assembled the following information for the current tax year: Earnings from wages, $84,212 Interest earned on
I need help with questions 3 please Eric has assembled the following information for the current tax year: Earnings from wages, $84,212 Interest earned on savings, $65 IRA deduction, $5,000 Checking account interest, $45 Three exemptions at $4,050 each Current standard deduction for filing status, $9,300 Amount withheld for federal income tax, $5,825 Tax credit for child care, $1,200 Child tax credit, $2,000 Filing status: head of household Questions 1. What are Eric's major financial concerns in his current situation? 2. In what ways might Eric improve his tax planning efforts? 3. Calculate the following: a. What is Eric's taxable income? (Refer to Exhibit 3-1 (@) ) b. What is his total tax liability? (Use tax rate table, page 80 (G)) What is his average tax rate? c. Based on his withholding, will Eric receive a refund or owe additional tax? What is the amount? For Example: Wages $45,000 Adjusted Gross Income $50,000 Taxable Income $30,000 Questions 1,2, 10 points each Question 3a 10 points You must identify and label the AGI at the correct point in the process. Question 3b 10 points (Use tax table on page 100 and consult example on page 102 and chapter lesson power point for guidance) chapter lesson power point for guidance) Question 3c 10 points
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