Brandon Mann has $84,750 in gross income from his job at the Acme Pro. During 2020 he had $2,600 in adjustments. He had $19000 in qualified medical expenses and $14,200 in other fully itemized deductions. He has 1 dog. Use 2020 tax tables posted on Canvas. Use the following information to answer the next 7 tax questions. Income tax held throughout the year = $13,440

Standard Deduction: Head of Household=$18,650; Single=$12,400; Married Filing Jointly=$24,800

1. What is the Adjusted Gross Income.
2. What is the total amount of itemized deductions?
3. What is the taxable income?
4. How much Federal tax is owed (what is their tax liability)?
5. What is the household’s average tax?
6. What is the household’s marginal tax bracket?
7. Will the household receive a refund or owe a payment to the government, and for how much?
8. What is the tax-free rate of return for an investment that has a taxable yield of 6.86% and you are in the 32% marginal tax bracket?
9. What is the effective annual yield of 8.2% compounded quarterly? 、Use the following information to answer the next 3 questions. You are looking at obtaining a 8 year simple installment loan of $52,750 with an annual interest rate of 7.63%.
10. What is the APR on the above loan?
11. What is the monthly payment?
12. If you make a monthly payment (use the answer from previous question), how much total interest will you pay over the life of the above loan?
13. You have a qualified medical deductible worth $6,200. Your AGI is $59,000.

(1) Can the medical deduction be accepted? 

(2) If yes, how much is it?

Answer rating: 100% (QA)

Will the household receive a refund or owe a payment to the government and for how much 2020 tax tables posted on Canvas mentioned above was not provi... View the full answer