Nickey is a single female with no children. She works for the Ambling Company in Human Resources. Her salary is $45,000.00. Nickey is paid monthly. Each month, the IRS withheld $400 from her check for tax withholding.

Nickey received $150 interest from her Money Market Account. She paid $2500 in student loan interest. Nickey has Coca-Cola stock that paid $1,000 in dividends this year. She invested $5500 in a traditional IRA.

Nickey purchased a home in January of 2018. She paid $7200 in total loan payments ($1200 principle/$6000 interest). She paid property taxes of $2500. She also made a charitable contribution to VSU of $3000.

question 1

Calculate Nickey's Adjusted Gross Income - Show your work

question 2

Should Nickey use the standard deduction or itemize her deductions? Calculate Nickey's Taxable Income. ASSUME SHE HAS NO CREDITS.

Show your work.

question 3

Calculate Nickey's Tax Liability. Use the tax rate schedule from slide #13 of the Chapter 3 Power Point. Show your work.

question 4

Will Nickey get a refund or have to pay? How much? Show your work.

TAX RATE SCHEDULES Individual Taxpayers If Taxable Income Is Between: 0 $9,525 $9,526 $38,700 $38,701 $82,500 $82,501 $157,500 $157,501 $200,000 $200,001 $500,000 $500,001+ The Tax Due Is: 10% of taxable income $952.50 + 12% of the amount over $9,525 $4,453.50 + 22% of the amount over $38,700 $14,089.50 + 24% of the amount over $82,500 $32,089.50 + 32% of the amount over $157,500 $45,689.50 + 35% of the amount over $200,000 $150,689.50 + 37% of the amount over $500,000