1. Write the formula for calculating taxable income.
2. Which form details earned wages, together with required and optional deductions?
Use the following tables to answer questions 3 & 4.
|
Year
|
Single
|
Married filing jointly
|
Married filing separately
|
Head of household
|
|
2009
|
$5700
|
$11,400
|
$5700
|
$8350
|
|
2008
|
$5450
|
$10,900
|
$5450
|
$8000
|
|
2007
|
$5350
|
$10,700
|
$5350
|
$7850
|
|
2006
|
$5150
|
$10,300
|
$5150
|
$7550
|
|
Status
|
Exemption
|
|
Single
|
$3650
|
|
Single with dependents
|
$3650 + $3650 • (# of dependents)
|
|
Married with no dependents
|
$7300
|
|
Married with dependents
|
$7300 + $3650 • (# of dependents)
|
3. Loretta is a single mom with two kids. Last year her gross income was $61,840. She plans on filing her taxes as Head of the Household, and claim herself and her 2 children. Using the tables above, find Loretta's taxable income.
4. Mike and Lisa are a married couple with 2 kids. Last year they made $79,480. They plan on filing jointly. Find Mike and Lisa's taxable income.
5. Using the information from a previous problem and given the tax table, find Mike and Lisa's tax owed.
6. How do you calculate Adjusted Gross Income (AGI)?
7. Medical expenses, non-reimbursed work expenses, donations to charity, property taxes, and mortgage interest are all examples of .
8. Cassandra is a recent college graduate. She got a job as a sports team manager making $82,000 a year and she will have to move across country for the new job. Her moving expenses are $7500. She has also started paying back her student loans and this year will pay back $1386 in student loan interest. What is Cassandra's Adjusted Gross Income (AGI)?
9. Last year Jeremy had $7900 in medical expenses. If his AGI was $89,000, will he be able to deduct his medical expenses and if so, what amount?
10. Ida is a receptionist who made a donation of $500 to her church. If Ida's AGI is $42,300, can she deduct the donation on her income tax return? If so, what amount.
11. In the United States currently, there are 6 tax brackets. List all 6.
12. Monica is an unmarried college student with no dependents. Last year, she made $14,000 working part time as a medical assistant. Each year she files taxes as Single, takes a standard deduction of $5700 and claims herself as only exemption for $3650. Based on this information, what tax bracket does Monica fall into?
|
Single
|
|
Taxable income is over
|
But not
over
|
Bracket
|
|
$0
|
8,350
|
10%
|
|
8,350
|
33,950
|
15%
|
|
33,950
|
82,250
|
25%
|
|
82,250
|
171,550
|
28%
|
|
171,550
|
372,950
|
33%
|
|
372,950
|
|
35%
|
13. Using the information from the previous problem, calculate the amount of taxes Monica owes.
|
Single
|
|
Taxable income is Over
|
But not
Over
|
The tax is
|
Plus
|
Of the
amount
over
|
|
$0
|
8,350
|
10.00
|
10%
|
$0
|
|
8,350
|
33,950
|
835.00
|
15%
|
8,350
|
|
33,950
|
82250
|
4,675.00
|
25%
|
33,950
|
|
82,250
|
171,550
|
16,750.00
|
28%
|
82,250
|
|
171,550
|
372,950
|
41,754.00
|
33%
|
171,550
|
|
372,950
|
|
103,216.00
|
35%
|
372,950
|
14. According to the following table, what is the federal income tax due for Mr. and Mrs. Jones filing their federal income tax return jointly who make a combined $92,400 in taxable income?
|
Married Filing Jointly
|
|
Taxable income is over
|
But not
over
|
The tax is
|
Plus
|
Of the
amount
over
|
|
$0
|
16,700
|
$0.00
|
10%
|
$0
|
|
16,700
|
67,900
|
1,670 00
|
15%
|
16,700
|
|
67,900
|
137,050
|
9,350.00
|
25%
|
67,900
|
|
137,050
|
208,850
|
26,637.50
|
28%
|
137,050
|
|
208,850
|
372,950
|
46,741 50
|
33%
|
208,850
|
|
372,960
|
|
103,594.50
|
35%
|
372,950
|
15. Ms. Mason is a kindergarten teacher whose gross income last year was $34,200. She made a $2000 contribution to an IRA. If she takes a standard deduction of $5700, claims only herself as an exemption for $3650, and she makes no further adjustment to her income, find the amount of taxes she has to pay.
|
Single
|
|
Taxable income is over
|
But not
over
|
The tax is
|
Plus
|
Of the
amount
over
|
|
$0
|
8,350
|
$0.00
|
10%
|
$0
|
|
8,350
|
33,950
|
835.00
|
15%
|
8,350
|
|
33,950
|
82,250
|
4,675.00
|
25%
|
33,950
|
|
82,250
|
171,550
|
16,750.00
|
28%
|
82,250
|
|
171,550
|
372,950
|
41,754.00
|
33%
|
171,550
|
|
372,950
|
|
108,216.00
|
35%
|
372,950
|
For questions 16-20 use the W-2 and 1040EZ forms below to answer all the questions. Francisco is a part-time teller at Bank of Philadelphia. He received the W-2 form below and a 1099-INT form, which shows that he earned $168 in interest from the CD he has. Francisco is unmarried and has no dependents. He did not receive any unemployment benefits.
16. While filling out all the lines above, what amount is to be entered on line 4 of the 1040EZ form?
17. While filling out all the lines above, what amount is to be entered on line 6 of the 1040EZ form?
18. What amount should go on line 7?
19. Based on this partially filled out 1040EZ form, will this person receive a refund or owe taxes? What amount?
20. A married couple wishing to file their taxes jointly, claim their children, as well as medical expenses must file their taxes using which form?
Attachment:- Assignment File.rar