Question
Zion is trying to calculate the lowest taxes he can pay for 2021. Here is a list of all information Zion believes is important for
Zion is trying to calculate the lowest taxes he can pay for 2021. Here is a list of all information Zion believes is important for calculating his taxes (Hint: Zion hasn't taken FIN 205 and may include some items that aren't related to taxes).
Zion falls under the "Single" filing status.
Zion is eligible for a $12,000 standard deduction.
Zion had a gross income of $68,705 in 2021.
Zion currently has mortgage worth $350k (that he got in 2020), he paid $12,611 in interest over the course of 2021.
In 2021, Zion contributed $4,542 to a Roth 401K account and he also opened a traditional IRA account and contributed $2,222.
Zion is a student who is eligible for $2,500 in education credits.
In 2021, Zion made a donation to a charity of old, but still good condition, clothing that he didn't want anymore at an estimated value of $559
Zion spent $34,899 on renovating and redecorating his living room over the course of 2021.
What is the lowest amount of taxes Zion needs to pay given the information above?
(Note: Please enter your answer without the "$" sign for canvas to grade you correctly)
Tax rate | Taxable Income (Single) | |
10% | Up to $9,875 | |
12% | $9,876 to $40,125 | |
22% | $40,126 to $85,525 | |
24% | $85,526 to $163,300 |
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