Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the comert it

image text in transcribed
image text in transcribed
Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the comert 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 $3,450, and also opened up an IRA, to which she contributed $500 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $2,400 gift from her great aunt Jamie was also lucky enough last year to win a raffle prize of $3,800, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jamie Lee's current tax liablity 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 2021 tex rates. 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 2021 amounts) or Itemized deductions (whichever total is larger) Itemized deductions (whichever total is larger) Medical expenses (exceeding 10% of AGI) Statefocal income and property taxes Mortgage, home equity loan interest Contributions Casualty and theft losses Moving, job-related, and miscellaneous 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GAO Financial Audit Manual Volume 1 Updated April 2020

Authors: United States Government GAO

2020 Edition

B091PR8396, 979-8733135977

More Books

Students also viewed these Accounting questions

Question

1. Identify and control your anxieties

Answered: 1 week ago