Study the basic individual income tax calculation presented in Chapter 3. Calculate: Adjusted Gross Income, Taxable Income, and Net Tax Due or Refund (assuming no prepayments were made) for the following taxpayers using the 2020 Tax Schedule and other information in the front and back of the book. Show your work for full credit. Nancy Filing Status: Single Gross Income: $15,000 Deductions for Adjusted Gross Income: $1,000 Itemized deductions: $5,000 Personal and Dependency exemptions 1 Age 23 Credits: $350 nonrefundable Jane Filing Status: Single Gross Income: $15,000 Deductions for Adjusted Gross Income: 0 Itemized deductions: $6,000 Personal and Dependency exemptions 1 Age 26 Credits: $350 refundable Compare Nancy and Jane: 1) Would you rather have a Deduction for AGI or an Itemized Deduction? Why? 2) Would you rather have a nonrefundable or a refundable credit? Why? 2020 Tax Rates and Amounts Tax Rate Schedules for 2020 Schedule x Single Individuals Taxable income Ow But Not Over Pay 59.875 $0.00 985 40125 98750 40025 15.25 461750 85 525 16300 14.605 50 1622300 207350 33.21750 207350 S400 4736750 St. 400 156235 on Excess 10 12 22 24 of the amount over so 9.875 0.125 85 525 163,300 207350 518.400 35 Over SCHEDULE Y-1: Married Filing Jointly and Surviving Spouses Taxable income But Not Over Pay 50 519.750 5000 19.750 80.250 1975 10250 171050 9,235 17LOSO 326,600 29.211 326600 414700 66563 414700 622.050 34735 622,050 167,30750 on Excess SON 12 22 24 32 35 37 of the amount over 50 19.750 80.250 171,050 325 600 414,700 622,050 SCHEDULE Y-Z: Married Individuals Filing Separately Taxable income Over But Not Over Pay 50 $9.875 $0.00 9.875 40,125 987.50 40,125 85 525 4.61750 B5.525 163.300 14,605.50 163.300 207350 33.27150 207,350 311,025 47,267.50 211.025 83,653 75 % on Excess 109 12 22 24 32 35 37 of the amount over SO 9.875 40,125 85,525 163,300 207,350 311,025 SCHEDULE Z: Heads of Households Taxable income Over But Not Over 50 514100 14,100 53.700 53.700 85,500 85.500 163,300 163,300 207,350 207350 518.400 518.400 Pay $0.00 1.410 6,162 13,158 31,830 45.926 154793.50 % on Excess 10% 12 22 24 32 35 37 of the amount over $0 14,100 53,700 85,500 163,300 207,350 518,400