Question

Petunia's (filing status: single and she is her only dependent) tax calculations are as follows assuming...

Petunia's (filing status: single and she is her only dependent) tax calculations are as follows assuming a 2018 tax year). 2018 standard deduction amount is $6,500 and the exemption amount for 2018 is $4150. Petunia is single and will claim herself as an exemption. She has a house mortgage interest amount of $4,300, property taxes of $3,900, and made $4,950 in charitable contributions during the year. All these are itemized deductions. Calculate her (progressive) income tax liability:

            Wages, salaries, and tips                                                           $38,700

            Plus: Interest income                                                                        142

                        Gross income                                                     $38,842

                  

            Less: Adjustments to (gross) income                                                    0

                        Adjusted gross income                                                  $38,842

            Less: Standard deduction                                                          <            >

            Less: Exemption (claim one only)                                              <_____  >_

                        Taxable income                                                         $

            Tax liability                                                                             $

            Less: Taxes withheld                                                                4,150.00

                        Tax due                                                                      $ __________

1.          If Petunia itemizes her deductions and uses one exemption, will she owe additional taxes for 2018? If she has underpaid by too great an amount, she may also be subject to an underpayment penalty regardless of whether she files her return by April 15 or not. Refer to IRS Publication 505.

2.         Recalculate Petunia's income tax for 2018 taxes without itemizing her deductions and using the same tax schedule. Using President Trump's new income tax law adjustment an increase in the standard deduction and no personal exemption. (2018 Standard deduction = $12,000, Personal exemption = $0). The first $9,525 of her income is taxed at a10% tax rate, the amount over $9,525 is taxed at 12%). Is Petunia eligible for a refund? Which income tax calculation will result in a lower federal income tax for Petunia?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer A.

Gross Income = $38842

Exemption = $ 4150

Itemized deduction :

1. House mortgage interest amount = $4,300

2.  Property taxes = $3,900

3. Charitable donations = $ 4950

Total itemized deductions = $13150

Non taxable itemized deductions (IRS publication 2018, 505) = $10000

Total deductions = $14150

Taxable salary = $38842-14150

Taxable salary = $24692

Tax till $9525 at 10% = $952.5

Tax after $9525 at 12% = 15167*.12 = 1820.04

Total tax = $2745.54

No she wont owe any additional taxes

Answer B.

Gross Income = $38842

Exemption = $ 4150

Standard deductions : $12000

Total deductions = $16150

Taxable salary = $38842-16150

Taxable salary = $22692

Yes petunia is eligible for a refund , and she paid less tax in second case

Tax till $9525 at 10% = $952.5

Tax after $9525 at 12% = 13167*.12 = 1580.04

Total tax = $2532.54

No she wont owe any additional taxes

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has a gross income of $90,100. His allowable deductions for adjusted gross income are $4,300, and his itemized deductions are $13,400. The standard deduction for 2017 is $6,350 and a personal exemption is $4,050. Round all amounts to the nearest dollar. Refer Tax Rate Schedules to answer the following questions. a. Hangtao's taxable income is $ and his tax liability is $________ for 2017. b....
Mary Jarvis is a single individual who is working on filing her tax return for the...
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $106,000 in salary. She received $13,500 of dividend income. She received $7,500 of interest income on Home Depot bonds. She received $23,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,300. She received $11,000 from the sale of Google stock that was...
Using the married filing jointly status and their income and expense​ statement, calculate the 2014 tax...
Using the married filing jointly status and their income and expense​ statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First use the standard​ deduction, and then use the following itemized​ deductions: Income Expenses Earned income ​$55,000.00 Home mortgage interest ​$8,200.00 Interest income 1,700.00 Real estate and state income taxes 3,900.00 Miscellaneous deductions 500.00 Explain to the Williams which method they should use and why. Shameka and​ Curtis' total gross income for the 2014 tax year is ​$_____....
Mary Jarvis is a single individual who is working on filing her tax return for the...
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $135,000 in salary. She received $19,000 of dividend income. She received $6,900 of interest income on Home Depot bonds. She received $23,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,100. She received $10,000 from the sale of Google stock that was...
Taylor is 13 and is a dependent on her parents taxes. in 2018 she earned 3400...
Taylor is 13 and is a dependent on her parents taxes. in 2018 she earned 3400 in wages, 1560 interest from a money market account, and 2100 interest on a bond. what is her standadr deduction, taxa let income, net unearned income and tax liability
Please show work 21) Katia, age 14, is a dependent of her parents. Her only source...
Please show work 21) Katia, age 14, is a dependent of her parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her by her grandparents. Katia's marginal rate is 10%, and her parent's marginal rate is 28%. Katia's tax for 2018 is (kiddie tax rules for 2018) A) $357. B) $395. C) $964. D) $1,044. 22) Santino, age 14, is a dependent of his parents. During 2018, Santino's earned income from wages is...
Z is a cash basis single taxpayer who itemizes her deductions. During 2017, Z had $4,000...
Z is a cash basis single taxpayer who itemizes her deductions. During 2017, Z had $4,000 in state income taxes withheld from her paycheck by her employer. She also paid the following estimated state income taxes for 2017: 4/15/17 $800 6/15/17 800 9/15/17 800 1/15/18 800 What is Z’s deduction for state income taxes on her 2017 Federal income tax return, assuming she itemizes? a. $7,200 b. $3,200 c. $4,000 d. $6,000 e. $6,400
Taylor, age 18, is a dependent of her parents. For 2018, she records the following income:...
Taylor, age 18, is a dependent of her parents. For 2018, she records the following income: $4,400 wages from a summer job, $1,885 interest from a money market account, and $2,100 interest from City of Boston bonds. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". a. Taylor's standard deduction for 2018 is $ . Taylor's taxable income for 2018 is $ . b. Compute Taylor's "net unearned income" for the purpose of...
Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents....
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...
Maria, a single tax-payer, earns wages of $45,500, received $925 in interest from a savings account,...
Maria, a single tax-payer, earns wages of $45,500, received $925 in interest from a savings account, and contributed $1,150 to a tax-deferred savings plan. She was entitled to a personal exemption of $3,800 and had itemized deductions totaling $5,450. Compute a) her gross income b) adjusted gross income c) taxable income d) set up but do not solve for her income tax. you can assume she had no tax credits this year
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT