Jackson has the following information for the current tax year.

Wages $95,250

Amount withheld for federal income taxes 10,175

Interest on savings and checking accounts 275

Investment income (dividends) 525

IRA contribution 4,500

Itemized deductions (total) 10,500

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

Filing Status: Head of Household. Jackson has two minor children, both children are in after-school daycare Standard Deduction for the year is $18,000

Questions

1. What is Jacksons Taxable Income?

2. What is Jacksons Total Tax liability: (a) before credits? (b) after credits?

3. Will Jackson have a Refund or Balance Due? How much?

4. What is Jacksons Marginal Tax rate?

5. What is Jacksons Average Tax rate? (use tax due BEFORE credits)

6. What would Jacksons tax savings be if she put $5,500 in her IRA instead of $4,500?