Santini’s new contract for 2022 indicates the following compensation and benefits:

Santini is 54 years old at the end of 2022. He is single and has no dependents. Assume that the employer matches dollar-for-dollar for the first $6,000 that the employee contributes to his 401(k) during the year. The restricted stock grant is 500 shares granted when the market price was $5 per share. Assume that the stock vests on December 31, 2022, and that the market price on that date is $7.50 per share. Also assume that Santini is willing to make any elections to reduce equity-based compensation taxes. The Hawaii trip was given to him as the outstanding salesperson for 2021. The group-term life policy gives him $150,000 of coverage. Assume that Santini does not itemize deductions for the year. Determine Santini’s taxable income and income tax liability for 2022.

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Benefit Description Salary Health insurance Restricted stock grant Bonus Hawaii trip Group-term life insurance Parking ($ per month) Amount $130,000 9,000 2,500 5,000 4,000 1,600 3,720