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 $80,284 in 2021. Zion currently has mortgage worth $350k (that he got in 2020), he paid $12,300 in interest over the course of 2021. In 2021, Zion contributed $5,097 to a Roth 401K account and he also opened a traditional IRA account and contributed $2,714. Zion is a student who is eligible for $2,500 in education credits. In 2021, Zion made a donation of old, but still good condition, clothing that he didn't want anymore at an estimated value of $591 Zion spent $34,376 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?
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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