Question
JayJay and CeeCee both work for JZ Corporation where JayJay earns $45,000 and CeeCee earns $65,000. JZ Corporation doesnt have a retirement plan for their
JayJay and CeeCee both work for JZ Corporation where JayJay earns $45,000 and CeeCee earns $65,000. JZ Corporation doesnt have a retirement plan for their employees. The following is information related to their taxes for the current tax year. If the couple owes $1,256 on their taxable income what is their final tax liability/refund after taking credits for which they qualify?
| Gross income $??? |
|
| JayJays Traditional IRA contribution $3,000 | Refundable Credit $2,500 |
| CeeCees Traditional IRA contribution $5,000 | Standard deduction $15,400 |
| Total itemized deductions $16,200 | Marginal tax rate 25 percent |
| A. $296; Liability | ||
| B. $1,244; Liability | ||
| C. $1,244; Refund | ||
| D. $1,296; Refund |
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Sitting Pretty On A Fixed Income Personal Finance Secrets For Seniors
Authors: FC&A Medical Publishing
1st Edition
1935574582, 9781935574583
