Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Laura has 2 dependent children and earns a gross yearly salary of $78,860. She will also make the following tax-deductible purchases: Student loan interest:

image text in transcribed

Laura has 2 dependent children and earns a gross yearly salary of $78,860. She will also make the following tax-deductible purchases: Student loan interest: $3,367 Educational expenses: $3,850 When she file her taxes, what will her tax refund be? Use the following information: Standard deduction for heads of households: $18,800 2021 Head of Household If Taxable Income is Between: $0 - $14,200 $14,201-$54,200 $54,201-$86,350 $86,351 $164,900 $164,901 - $209,400 $209,401 - $523,600 $523,601 or more Biweekly allowance: $165.38 per person. The Tax Due is: 10% of taxable income $1,420 plus 12% of the amount over $14,200 $6,220 plus 22% of the amount over $54,200 $13,293 plus 24% of the amount over $86,350 $31,145 plus 32% of the amount over $164,900 $46,385 plus 35% of the amount over $209,400 $156,355 plus 37% of the amount over $523,600 2021 Head of Household Person Biweekly Withholding Table Taxable Wages $0-$362 $362-$635 $635-$1,404 $1,404 - $2,022 $2,022 - $3,533 $3,533-$4,388 $4,388 $10,431 $10,431 or more $0.00 Wages Withholding $0.00 plus 10% of amount exceeding $362 $27.30 plus 12% of amount exceeding $635 | $119.58 plus 22% of amount exceeding $1,404 $255.54 plus 24% of amount exceeding $2,022 $618.18 plus 32% of amount exceeding $3,533 $891.78 plus 35% of amount exceeding $4,388 $3,006.83 plus 37% of amount exceeding $10,431 For your final answer proceed as: Annual Income Tax Pay/Refund = Total Annual Withholding - Final Income Tax. If the couple has to pay the government, type the number with a negative sign. For example -1280. If the couple has to receive a refund from government, type the number without sign. For example 1280. Round your answer to the nearest dollar.

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_2

Step: 3

blur-text-image_3

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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

What questions do you have for us?

Answered: 1 week ago

Question

Please explain me this concept.

Answered: 1 week ago