!!!!! just need help with number 5.

taxes. This makes more money available during the year, but for the last few years he has had to make large payments in April-another financial burden. Although Eric has created an investment fund for his daughters' college education and for his retirement, he has not sought to select investments that offer tax benefits. Overall, he needs to look at several aspects of his tax planning activities to find strategies that will best serve his current and future financial needs. Eric has assembled the following information for the cur- rent tax year: Earnings from wages $99,170 Interest earned on savings $150 IRA deduction $5,500 $80 Checking account interest Current standard deduction for filing status $18,000 Amount withheld for federal income tax $10,178 Tax credit for child care Head of household Filing status Questions 1. What are Eric's major financial concerns in his current situation? 2. In what ways might Eric improve his tax planning efforts 3. Is Eric typical of many people in our society with regard to tax planning? Why or why not? 4. What additional actions might Eric investigate with regard to taxes and personal financial planning? 5. Calculate the following. a. What is Eric's taxable income? (Refer to Exhibit 4-1.) b. What is his total tax liability? (Use Exhibit 4-6) What is his average tax rate? c. Based on his withholding, will Eric receive a refund or owe additional tax? What is the amount? $600