Question

Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $44,900 as a sales representative for Planning Associates; $3,143 of her wages was withheld for federal income taxes. In addition, she had interest income of $153. The standard deduction in 2018 was $12,000 for single. Please calculate the taxable income, tax liability, and tax refund or owed. The appropriate tax rate schedule is shown below:

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
$500,001 or more	$150,689.50 plus 37% of the amount over $500,000

Answer 1