Problem 1:

Craig is a 35 year old single taxpayer with no dependents. Craig has no tax credits and had $10,000 of federal income tax withheld from his paychecks. Other information needed to prepare Craigs 2018 individual income tax return is as follows:

Salary (the salary is Craigs only income for 2018) $ 71,000

Interest paid on student loan (8,000)

(Interest paid on student loans is aa for AGI above-the-line

deduction, but it is subject to limits relevant to this

problem (see chapter 6)

Total itemized deductions (9,000)

Calculate Craigs:

Total Income-

Adjusted Gross Income-

Taxable Income-

Tax-

Taxes due or refund-