Questions and Topics We Can Help You To Answer:
Paper Instructions:
Computing Taxable Income. Ross Martin had the following tax information:
Gross salary, $52,145
Interest earnings, $205
Dividend income, $65
One personal exemption, $3,900
Itemized deductions, $9,250
Adjustments to income, $1,200
Determining Tax Deductions. If Lola Harper had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $6,100.
Donations to church and other charities, $2,050
Medical and dental expenses that exceed 10 percent of adjusted gross income, $330
State income tax, $690
Job-related expenses that exceed 2 percent of adjusted gross income, $1,610
Calculating Tax Deductions. Kaye Blanchard is 72 years old. She has $30,000 of adjusted gross income and $8,000 of qualified medical expenses. She will be itemizing her tax deductions this year.
How much of a tax deduction will Kaye be able to deduct?
Comparing Tax Deductions and Credits. Imari Brown is attending community college. She has $1,000 of education expenses. She claims herself on her tax return. She is trying to decide between the tuition and fees deduction or an education credit. If Imari is in the 15% tax bracket, which should she choose?
Calculating Average Tax Rate. What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870?
Comparing Taxes on Investments. Would you prefer a fully taxable investment earning 8.1 percent or a tax-exempt investment earning 6.1 percent? Why? (Assume 1 28 percent tax rate.)
Capital Gains. Samuel Jenkins made two investments, the first was 13 months ago and the second was two months ago. He just sold both investments and has capital gains of $2,000 on each. If Samuel is in the 28 percent tax bracket, what will be the amount of capital gains tax on each investment?
Future Value of a Tax Savings. On December 30, you decide to make a $1,500 charitable donation.
a. If you are in the 28 percent tax bracket, how much will you save in taxes for the current year?
b. If you deposit the tax savings in a savings account for the next five years at 4 percent, what will be the future value of that account?
