1. Daniel Simmons arrived at the following tax information: Gross salary: $62,250 Dividend income $140 Itemized deductions:...
Question:
1. Daniel Simmons arrived at the following tax information:
Gross salary: $62,250
Dividend income $140
Itemized deductions: $7,000
Interest earnings $75
One personal exemption $4050
Adjustments to income $850
What amount would Daniel report as taxable income?
2. If Samantha jones had the following itemized deductions, should she use schedule A or standard deduction. The standard deduction for her tax situation is $6350. Donations to the church and other charities $3050. Medical and dental expenses exceeding 10% of adjusted gross income, $450. State income tax $920. Job related expenses exceeding 2% of adjusted gross income $1450.
3. What would be the average tax rate for a person who paid taxes of $6435 on taxable income of $40,780.
4. Based on the following data with Beth and Roger Simmons receive a refund or owe additional taxes?
Adjusted gross income $42,140
Credit for child and dependent care expenses $400
Amount for personal exemptions $12,150
Itemized deductions $11,240
Federal income tax withheld $6686
Tax rate on taxable income 10%
Focus On Personal Finance
ISBN: 9780077861742
5th Edition
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart