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Section 4 Inclass Quiz Solution

# Section 4 Inclass Quiz Solution - (10,000 Less Personal...

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Acc 200P Name: ________________________ Lab Section #_________________ Section 4 – Introduction to Taxation SOLUTION Shauna is a single adult with no children. During 2009, she had the following information available: Her gross income was \$60,000. Deductions for adjusted gross income amounted to \$3,000. Itemized deductions totaled \$10,000. She is eligible for a standard deduction of \$5,700. She is eligible for a personal exemption of \$3,650. She had \$7,000 in federal income taxes withheld. She has no tax credits. Based on this information, answer the following questions: 1. What is Shauna’s adjusted gross income (AGI)? \$__ 57,000 ___ Gross income \$60,000 Less: Deductions for AGI (3,000) AGI \$57,000 2. What is Shauna’s taxable income? \$__ 43,350 ____ AGI (see above) \$57,000 Less: Itemized deductions
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Unformatted text preview: (10,000) Less: Personal Exemption (3,650) Taxable Income \$43,350 3. Using the tax tables at the bottom of the page, calculate Shauna’s tax liability. \$_ 7,025 _____ \$4,675 + .25(43,350 – 33,950) = \$7,025 4. Calculate Shauna’s tax due or refund. \$_ 25 still due _______ 5. If Shauna had made \$1,000 more in income during the year, what percentage of this amount would be paid in federal income taxes? 25% (or \$250 more in tax would be due) Single: (2008 Tables) If taxable income is over --But not over --The tax is: \$0 \$8,025 10% of the amount over \$0 \$8,025 \$32,550 \$802.50 plus 15% of the amount over \$8,025 \$32,550 \$78,850 \$4,481.25 plus 25% of the amount over \$32,550 \$78,850 \$164,550 \$16,056.25 plus 28% of the amount over \$78,850...
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