Question: Jacque Smith, an interior designer, is one - year shy of her thirtieth birthday. She has come to you for help in preparing her taxes.

Jacque Smith, an interior designer, is one-year shy of her thirtieth birthday. She has come to you for help in preparing her taxes. Use the information in the chapter, as well as the assumptions below, to answer the following questions:
She is single;
She has one child (age 10 years);
She made $39,500 in wages last year;
She earned $300 in taxable interest last year;
Last year she received a $100 tax refund from the State of Georgia, where she is resident;
She paid $250 in student loan interest;
She incurred $2,450 in medical expenses, $2,800 in state and property taxes, and made a $3,000 charitable donation to her church;
She is thinking about going to graduate school next year, which will cost $5,000; she has not yet started saving for this potential expense;
She had $4,000 withheld from her pay for federal taxes;
Jacque itemized deductions for federal tax purposes the previous year; and
In 2021 and 2022, Jacque opted to not receive the one-half the Child Tax Credit in advance via monthly payments, per the American Rescue Plan Act (2021).
a. How many personal exemptions may she claim?
b. What is Jacques filing status?
c. How much must she report on Line 1 of Form 1040(wages, salaries,etc)
d. What is Jacques total income for the year?
e. What is Jacques AGI?
f. What deduction amount should Jacque claim?
g. How much taxable income must she report this year?
h. What marginal tax bracket does Jacque fall?
i. What is her tax liability for the year?
j. How much may Jacque claim in tax credits for the year?
k. Is Jacque due a refund this year? Why or why not?

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