Ezequiel Holz is a 30 year old man that lives in Peoria, IL. He works as a Business Manager for the local Tax office. His annual salary includes his base income of $49,000 and an incentive bonus of $6,000 if the office meets all its goals. For this past year, Mr. Holz received all of the incentive bonus. You have no other information available.

Question 1: What is the tax liability for Mr. Holz?

Question 2: Give an example of an ADJUSTMENT he could make to his gross income

Question 3: Assuming that his company withheld $10,000 for taxes, does he owe money to the IRS or not?

Answer rating: 100% (QA)

2 Any contribution to retirements such as social security can be adjust... View the full answer