Rick, who is single, has been offered a position as a city landscape consultant. The position pays
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Question:
Rick, who is single, has been offered a position as a city landscape consultant. The position pays $110,000 in cash wages. Assume Rick files single and is entitled to one personal exemption. Rick deducts the standard deduction instead of itemized deductions. (use the tax rate schedules.)
Suppose Rick receives a competing job offer of $105,000 in cash compensation and nontaxable (excluded) benefits worth $4,350. What is the amount of Rick’s after-tax compensation and income tax liability for the competing offer?
(1) | Gross income | $105,000 | ||
(2) | For AGI deductions | 0 | ||
(3) | Adjusted gross income | $105,000 | ||
(4) | Standard deduction | (6,300) | ||
(5) | Personal and dependency exemptions | (4,000) | ||
(6) | Taxable income | $94,700 | ||
(7) | Income tax liability | |||
After-tax compensation |
Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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