Jamie Lee Jackson, age $26,$ is in her last semester of college and is waiting for graduation day that is just around the corner! It is the

time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the

bakery, which brought her gross monthly earnings to $$2,600,$ and also opened up an IRA, to which she contributed $$350$ last year. Her

savings accounts earn $2\%$ interest per year, and she also had received an unexpected $$1,550$ gift from her great aunt. Jamie was also

lucky enough last year to win a raffle prize of $$2,100,$ most of which was deposited into her regular savings account after paying off her

credit card balance.

Estimate Jamie Lee's current tax liability by completing the form below. Use standard deduction $($$$6,300)$ and personal exemption

$($$$4,050).$ Each answer must have a value for the assignment to be complete. Enter $"0"$ for any unused categories. Use $2016$ tax rates.

Current Financial Situation

Answer is not complete.

Estimated Income Tax

Gross income $($wages$,$ salary, investment income, and other ordinary income$)$

Less adjustments to income $($see current tax regulations$)$

Equals adjusted gross income

Less standard deduction $($use $2016$ amounts$)$ or Itemized deductions

$($whichever total is larger$)$

Itemized deductions $($whichever total is larger$)$

Medical expenses $($exceeding $10\%$ of AGI $)$

State$/$local income and property taxes

Mortgage, home equity loan interest

Contributions

Casualty and theft losses

Moving, job$-$related, and miscellaneaous expenses $($exceeding $2\%$ of

AGI

Total itemized deductions

Larger of standard or itemized deductions

Less personal exemptions

Equals taxable income

Estimated tax

Less tax credits

Plus other taxes

Equals total tax liability

Less estimated withholding and payments

Equals tax due $($or refund$)$