Ginger Howell has the following information for the current tax year.

Wages $$83,290$

Interest on savings and checking accounts $250$

Investment income $($dividends$)575$

Sales Bonus$/$Commission $3,000$

IRA contribution $3,500$

Amount withheld for federal income taxes $10,125$

Itemized deductions $($total$)15,500$

Tax credits for: child care $$400($per eligible child$)$;

child tax $$2,000($per eligible child$)$

Filing Status: Head of Household

Ginger has two minor children, ages $10$ and $8$; both children are in after$-$school daycare

Standard Deduction for the year is $$18,000$

Questions:

$1.$ What is Ginger$$s Taxable Income?

$2.$ What is Ginger$$s Total Tax liability:

$($a$)$ before credits? $($use the $2018$ Tax Tables$)$

$($b$)$after credits?

$3.$ Will Ginger have a Refund or Balance Due? How much?

$4.$ What is Ginger$$s Marginal Tax rate?

$5.$ What is Ginger$$s Average Tax rate?

$6.$ What would Ginger$$s tax savings be if she put $$5,500$ in her IRA instead of $$3,500?($Calculate the

difference in the two options.$)$