Hannah contributed $300 per month into her retirement account in pre-tax dollars during the last tax year.
Question:
a. What would her taxable income have been had she contributed to the account in after-tax dollars?
b. Use the tax tables below to calculate her tax in both the pre-tax and after-tax contribution situations.
c. How much did Hannah save in taxes during that year?
Transcribed Image Text:
If line 43 If line 43 And you are At ButSingle Married Married HeadtBut Single Maried Married Head sepa- house- least less jointly sepahouse- than Trately hold Your tax is_ 75,000 72,000 72,050 14,350 0,694 14,539 13069 75,000 75,050 15,100 11444 15,379 13,819 72,050 72,100 14,363 10,706 14,553 13,0875,050 75,100 15113 1456 15,393 13,831 72,100 72,150 14,375 10,719 14,567 13,09475,100 75,150 15125 1469 15,407 13,844 72,150 72,200 14,388 0,731 14,581 13,106 75,150 75,200 15,138 48 15,421 13,856 72,200 72,250 14,400 10,744 14,595 13.119 75,200 75,25015,150 11.494 15,435 13,869 72,250 72,300 14,413 10,756 14,609 13.131 75,250 75,300 5163 1506 15,449 13,881 72,300 72,350 14,425 10,769 14,623 13.144 75,300 75,350 15,175 11.519 15,463 13,894 72,350 72,400 14,438 10,781 14.637 13,156 75350 75,400 15,18853 5,477 13,906 72,400 72450| 14,450 10,794 14.651 13.169||75,400 75,450| 15.200 11,544 15,491 13.919 72,450 72,500 14.463 086 14,665 13.181 75,450 75,500 15.213 11.556 15,505 13,931 72,500 72,550 14475 10,819 14.679 13,194 75,500 75,550 15,225 11,5695519 13,944 72,550 72,600 14,488 10,831 4,693 13206 75,550 75,600 15,23858 5,533 13,956 72,600 72,650 14,500 10,844 14.707 13,219 75,600 75,650 15.250 11,594 15,547 13,969 72,650 72,700 14,513 10,856 14.721 13.23 75,650 75,700 15263 1606 15,561 13.981 72,700 72,750 14,525 10,869 14,735 13.244 75,700 75,750 15,27569 15,575 13,994 72,150 72,800 14,538 10.881 4,749 13256 75,750 75,800 15.288 63 5,589 14,006 72,800 72,850 14,550 10,894 14,763 13,269 75,800 75,850 15,300 11,644 15,603 14,019 72850 72,900 14,563 10,906 14,777 13.281 75,850 75,90015313 11.656 15,617 14,031 72.900 72950 14,575 10,919 14.791 13.294 75,900 75,950 15.325 11,669 15,631 14,044 72,950 73,000 14,588 10,931 14,805 13.306 75,950 76,000 15,338 68 15,645 14,056
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
a 300 12 3600 3600 72000 75600 b Pretax ...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Question Posted:
Students also viewed these Linear Algebra questions
-
Amanda has 30 years to save for her retirement. At the beginning of each year, she puts $5000 into her retirement account. At any point in time, all of Amandas retirement funds are tied up in the...
-
Jack contributed $400 per month into his retirement account in pre- tax dollars during the last tax year. His taxable income for the year was $62,350. He files taxes as a single taxpayer a. What...
-
Laura has been contributing to a retirement account that pays 4% interest with pre-tax dollars. This account compounds interest monthly. She has put $500 per month into the account. At the end of 10...
-
A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for...
-
This case requires students to apply theoretical concepts relating to dividend policy in a realistic situation. It covers the full range of ideas studied in the chapter and asks students to extend...
-
Estimate the mean ionic activity coefficient and activity of a solution that is 0.020 mol kg-I NaCI (aq) and 0.035 mol kg-I Ca (N03Maq).
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
Jane Melody asks you to scan Sonics external environment for early warning signals of new opportunities and emerging threats that could affect the success of the Sonic 1000 Smartphone. Using Internet...
-
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased $138,800 of materials. b....
-
Angelo says, When Im trying to have a face-to-face conversation with someone, and that person repeatedly interrupts the conversation to answer their cell phone or exchange text messages, they are...
-
Hillary's employer offers an annual pension benefit, for employees that have worked for the company for more than 10 years. The benefit is calculated by multiplying 5.08% of the career average salary...
-
Regina is a 45-year-old supervisor for a communications company. She files taxes as married filing separately. She withdrew $50,000 from her tax-deferred retirement account to pay off her loans....
-
When $1000 is invested at r% interest (compounded continuously) for 10 years, the balance is f (r) dollars, where f is the function shown in Fig. 3. (a) What will the balance be at 7% interest? (b)...
-
If a company generates gains, this is considered a financing activity this is separate and distinct from sales revenue this represents income from ordinary activities this is not considered income.
-
Basic EPS is required on the financial statements under IFRS used to determine share price, the lower the EPS the higher the share price. used by creditors to make lending decisions a measurement of...
-
4. Compare your value of slope with the value of 42 divided by g; what is the percent error between your value and the accepted value of 42 divided by g?
-
A hockey player shoots a 160g puck with a force of 400N over a distance of 10cm. How much work did the player do on the puck? If the puck starts from rest, what will its velocity be when the player...
-
what are caused when light passes through a cloud and some photons with energies corresponding to differences in energy levels in a given element are "consumed" by atoms to push their electrons to...
-
Discuss major health problems at work and how to remedy them.
-
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
-
Multiply. Assume that all exponents are natural numbers. (a) (an + bn) (an - bn) (b) (ta + 4) (ta - 7) (c) (an + bn)2
-
Perform the indicated operations. (a) 13ab2 - 4a2b - 2ab + 62 + (-ab2 - 5a2b + 8ab + 4) (b) (-6m2n + 3mn2 - 5mn + 2) + (4m2n + 2mn2 - 6mn - 9) (c) (2x + 3y + z - 7) + (4x - 2y - z + 8) + (-3x + y -...
-
Factor out the largest common factor. (a) 3x + 18 (b) 5y - 20 (c) 2z3 - 8z2
-
Cemex has an enviable past, a struggling present and an uncertain future. The company boasts of a century-old history and has weathered many a storm in an unfriendly Mexican business environment....
-
What is the purpose of writing goodwill messages? When is the best time to do a goodwill message and send it?
-
Why do you think humans have the tendency to make the "fundamental attribution error
Study smarter with the SolutionInn App