Question
I really only need the answers for E and F thank you For tax purposes, gross income is all the money a person receives in
I really only need the answers for E and F thank you
For tax purposes, gross income is all the money a person receives in a given year from any sourceBut income taxes are levied on taxable incomerather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $60,000 last year in wages, earned $10,000 from investmentsand received a 5,000 gift from your grandmotherAlso assume that you are a single parent with one small child living with you Instructions: Enter your answers as a whole number aWhat is your gross income? 75000 Gifts of up to $15,000 per year from any person are not counted as taxable income. Alsothe personal exemption allows you to reduce your taxable income by 4,050 for each member of your household. Given these exemptions, what is your taxable income? 61900 Next, assume you paid $700 in interest on your student loans last yearput $2,000 into a health savings account [HSA] and deposited $4,000 into an individual retirement account (IRA)These expenditures are all tax exemptmeaning that any money spent on them reduces taxable income dollar-for-dollarKnowing that fact, now what is your taxable income? 55200 d Next, you can either take the so-called standard deduction or apply for itemized deductions ( which involve a lot of tedious paperwork)You opt for the standard deduction that allows you as your head of household to exempt another $18,350 from your taxable income. Taking that deduction into account, what is your taxable income? 36850 e . Apply the tax rates shown in the table below to your taxable income. Marginal Tax 12 Total Taxable Incone \$0-\$19,400 19,401 78,950 578:951-\$168.400; \$168,401-\$321,450; \$321,451 408,200 \$403,201*\$612,350; 5612, 351an * dabove 37 How much federal income tax will you owe? Instructions: Enter your answer rounded to 2 decimal places 4422 What marginal tax rate applies to your last dollar of taxable income? 12 percent. As the parent of a dependent child, you qualify for the government's $2,000 per-child tax creditLike all tax credits, this 2.000 credit paysfor $2,000 of the tax you oweGiven this credit, how much money will you actually have to pay in taxes? Instructions: Enter your answer rounded to 2 decimal places 2034.00 Using that actual amountwhat is your average tax rate relative to your taxable income in d? InstructionsEnter your answer rounded to decimal place percent What is your average tax rate relative to your gross income? InstructionsEnter your answer rounded to 1 decimal place 27 percent
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