5). Suppose your neighbor earned wages of $275,000, received $1580 in interest from a savings account,...
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5). Suppose your neighbor earned wages of $275,000, received $1580 in interest from a savings account, and contributed $3800 to a tax-deferred retirement plan. He is entitled to a personal exemption of $4050 and the same exemption for each of his two children. He is also entitled to a standard deduction of $6300. The interest on his home mortgage was $51,235. He contributed $74,000 to charity and he paid $12,760 in state taxes. He has no additional tax credits. Hint: the itemized deduction would include interest paid on home mortgage, contributions to charity, and amount paid in state taxes. Find your neighbor's: a). Gross Income: b). Adjusted Gross Income: c). Taxable Income: 5). Suppose your neighbor earned wages of $275,000, received $1580 in interest from a savings account, and contributed $3800 to a tax-deferred retirement plan. He is entitled to a personal exemption of $4050 and the same exemption for each of his two children. He is also entitled to a standard deduction of $6300. The interest on his home mortgage was $51,235. He contributed $74,000 to charity and he paid $12,760 in state taxes. He has no additional tax credits. Hint: the itemized deduction would include interest paid on home mortgage, contributions to charity, and amount paid in state taxes. Find your neighbor's: a). Gross Income: b). Adjusted Gross Income: c). Taxable Income:
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To calculate your neighbors taxable income we need to consider the various components ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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