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 $1550 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 *o* for any unused categories. Use 2017 tax rates. Rate on Married Taxpayers Taxable income Single Taxpayers Filing Jointly Heads of Household 10% Up to $9,325 Up to $18,650 Up to $13,350 15 $9,326-$37.950 $18,651-$75,900 $13,351-$50,800 25 $37,951-$91.900 $75,901-$153,100 $50,801-$131,200 28 $91,901-$191,650 $153,101-$233,350 $131,201-$212,500 33 $191,651-$416,700 $233,351-$416.700 $212,501-$416,700 35 $416,701-$418,400 $416,701-$470.700 $416,701-$444,550 39.6 Over $418,401 Over $470.701 Over $444,551 Current Financial Situation Assets: Monthly Expenses: Checking account $2,250 Rent obligation $280 Savings account $7,000 Utilities $140 (Interest earned last year) $130 Food $135 Emergency fund savings $4,000 Gas/maintenance account $115 (Interest earned last year) $80 Credit card payment $0 IRA balance (Contribution made last year) $360 Savings allocation: $350 Regular savings (monthly) $3,100 Rainy day savings (monthly) $150 Car $30 Liabilities: Entertainment: Student loan $10,900 Cake decorating class $35 Credit card balance $0 Movies with friends $55 (Interest paid last year) $60 Income: Gross monthly salary $2,600 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) 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 $ 0 Larger of standard or itemized deductions $ 0 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) $ 0
