Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst...
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Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year. A blank Form 1040 and Schedule 1 may be obtained at www.irs.gov. Scholarship used to pay tuition $5,750 Scholarship used to pay room and board 1,850 Salary 55,000 Interest income 185 Potential itemized deductions 3,000 Income taxes withheld 2,600 Tax rates levied on personal income vary with the amount of reported taxable income and the taxpayer's filing status. 2018 Tax Rate Schedules Single Taxable Income Tax Rate $0-$9,525 10% of taxable income $9,526-$38,700 $952.50 plus 12% of the amount over $9,525 $38,701-$82,500 $4,453.50 plus 22% of the amount over $38,700 $82,501-$157,500 $14,089.50 plus 24% of the amount over $82.500 $157,501-$200,000 $32,089.50 plus 32% of the amount over $157,500 $200,001-$500,000 $45,689.50 plus 35% of the amount over $200,000 $150,669.50 plus 37% of the amount over $500,000 $500,001 or more a. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3. Liam's 2018 tax return: b. Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution $5,000 150 Cash dividends received Liam's 2018 tax return: Liam McKenzie is single, graduated from college in 2018 and began work as a systems analyst in July of that year. He is preparing to file his income tax return for 2018 and has collected the financial information shown below for that calendar year. A blank Form 1040 and Schedule 1 may be obtained at www.irs.gov. Scholarship used to pay tuition $5,750 Scholarship used to pay room and board 1,850 Salary 55,000 Interest income 185 Potential itemized deductions 3,000 Income taxes withheld 2,600 Tax rates levied on personal income vary with the amount of reported taxable income and the taxpayer's filing status. 2018 Tax Rate Schedules Single Taxable Income Tax Rate $0-$9,525 10% of taxable income $9,526-$38,700 $952.50 plus 12% of the amount over $9,525 $38,701-$82,500 $4,453.50 plus 22% of the amount over $38,700 $82,501-$157,500 $14,089.50 plus 24% of the amount over $82.500 $157,501-$200,000 $32,089.50 plus 32% of the amount over $157,500 $200,001-$500,000 $45,689.50 plus 35% of the amount over $200,000 $150,669.50 plus 37% of the amount over $500,000 $500,001 or more a. Prepare Liam's 2018 tax return, using a $12,000 standard deduction and the tax rates given in Exhibit 3.3. Liam's 2018 tax return: b. Prepare Liam's 2018 tax return using the data in part a along with the following information: IRA contribution $5,000 150 Cash dividends received Liam's 2018 tax return:
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Related Book For
Personal Financial Planning
ISBN: 978-1305636613
14th edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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