Taxation Practice- 20 Pts Your Assignment: Answer the questions below using the provided information as well as the supplemental information at the end of the document. If you have no information regarding a deduction or adjustment, assume there is nothing that would affect the tax calculation. 1. You are a single person with no dependents, earning a salary of $47,810. You have no adjustments to your income. Use the information provided to find your taxable income. Use this equation: Taxable income = gross income - (adjustments + deductions + exemptions) Then find your tax liability. Explain how you found your answer. (6 points: 3 for the correct answer, 3 for the supporting explanation) ANSWER: Taxable income: Tax Liability: 2. You meet that special person and get married! Amazingly, your spouse has EXACTLY the same income you do, $47,810. If your tax status is now "married-filing jointly, what is your tax liability? Explain how you calculated this. (Remember, your income as a couple is double your individual income.) (6 points: 3 for the correct answer, 3 for the supporting explanation) ANSWER: Tax Liability: 3. There are now twice as many people in the household, but your income has also doubled. Is your new tax liability about twice as much as when you were single, more than twice as much, or less than twice as much? Tell whether you think this difference or the lack of one- seems fair. (6 points: 3 for identifying the relationship correctly, 3 for the discussion of fairness) ANSWER: 4. Congratulations! You now have a child! (Also, you have a dependent.) What is your tax liability if you file jointly now? Identify how this changes your calculations. (6 points: 5 for the correct answer, 1 for identifying what has changed in the calculation) ANSWER: Tax Liability: 5. How did your tax liability change when you had a child? Why do you think the tax policies do this? (6 points: 3 for correctly finding the change in liability, 3 for a plausible reason for the change)