Reference no: EM131637336

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