to find estimated tax, I was multiplying my taxable income with the percent (12%). its wrong so how do i figure it out ?
Saved Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $3.450, and also opened up an IRA, to which she contributed $500 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $2,400 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $3,800, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jamie Lee's current tax liability by completing the form below. Use the 2018 values for standard deduction ($12,000). Each answer must have a value for the assignment to be complete. Enter "O" for any unused categories, 2018 Tax Rates Current Financial Situation Assets: Monthly Expenses: Checking account $2.950 Rent obligation $365 Savings account $8,700 Utilities $225 (Interest earned last year) $215 Food Emergency fund savings account $5.700 Gas/maintenance $200 Interest earned last year) $100 Credit card payment $0 IRA balance $530 Savings allocation: (Contribution made last year) $500 Regular savings (monthly $190 Car $4,800 Rainy day savings (monthly $40 Liabilities: Entertainment Student loan $12.600 Cake decorating class $65 Credit card balance SO Movies with friends $85 (Interest paid last yean $85 Income: Gross monthly salary $3,450 $220 $ $ Estimated Income Tax Gross income (wages, salary, investment income, and other ordinary income) Less adjustments to income (see current tax regulations) Equals adjusted gross income Less standard deduction (use 2018 amounts) or 45,515 500 45,015 12,000 $ $ $ $ $ Itemized deductions (whichever total is larger) Medical expenses (exceeding 10% of AGI) State/local income and property taxes Mortgage, home equity loan interest Contributions Casualty and theft losses Moving, job-related, and miscellaneaous expenses (exceeding 2% of AGI) Total itemized deductions Larger of standard or itemized deductions Equals taxable income 0 $ 0 $ 0 $ 12,000 33,015 3,962 X Estimated tax (based on 2018 tax tables) Less tax credits Plus other taxes Equals total tax liability Less estimated withholding and payments Fanals tax di lor refund $ 3,962 S 3 962 e/kapoor_13e/2018_Tax_Rates.... AX RATES se your taxable income in conjunction with the appropriate tax table or tax schedule. For several years previous to 1987, there were 14 tax ates, ranging from 11 to 50 percent. For 2018, the seven-rate system for federal income tax was as follows: Married Taxpayers Filing Jointly Single Taxpayers Rate on Taxable Income Head of Households 10% Up to $9,525 Up to $19,050 Up to $13,600 12 $9,525-$38,700 $19,050-$77,400 $13,600-$51,800 22 $38,700-$82,500 $77,400-$165,000 $51,800-$82,500 24 $82,500-$157,500 $165,000-$315.000 $82,500-$157,500 33 $315,000-$400,000 $157,500-$200,000 $157,500-$200,000 $200,000-$500,000 35 $200,000-$500,000 $400,000-$600,000 $600,000+ 37 $500,000+ $500,000+
