Question

1. Daniel Simmons arrived at the following tax information:

Gross salary: $62,250

Dividend income $140

Itemized deductions: $7,000

Interest earnings $75

One personal exemption $4050

Adjustments to income $850

What amount would Daniel report as taxable income?

2. If Samantha jones had the following itemized deductions, should she use schedule A or standard deduction. The standard deduction for her tax situation is $6350. Donations to the church and other charities $3050. Medical and dental expenses exceeding 10% of adjusted gross income, $450. State income tax $920. Job related expenses exceeding 2% of adjusted gross income $1450.

3. What would be the average tax rate for a person who paid taxes of $6435 on taxable income of $40,780.

4. Based on the following data with Beth and Roger Simmons receive a refund or owe additional taxes?

Adjusted gross income $42,140

Credit for child and dependent care expenses $400

Amount for personal exemptions $12,150

Itemized deductions $11,240

Federal income tax withheld $6686

Tax rate on taxable income 10%

Answer 1