HDF doc - Assignment 6 Answer Compilation 1. 11% ATR =...

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Assignment 6 Answer Compilation 1. 11% ATR = income tax liability after credits/$58,055 (taxable income) 6,426/58,055 = 11% 2. $760 Credit gave Coopers a savings of $1,360, deducted yielded $4,000, but that has to be multiplied by the marginal tax rate (0.15) 4,000 x 0.15 = 600 1,360 - 600 = 760 3. $225 $125 x 12 = $1,500 for the year $1,500 x 0.15 (marginal tax rate) = $225 4. $150 marginal adjusted gross income = $76,755 $76,755 + $430 (student loan deduction amount) = $77,185 if the marginal adjusted gross income is less than $89,000 for married couples filing joint status, you can deduct the entire tax on the $1,000 contribution $1,000 x 0.15 (marginal tax rate) = $150 5. $492 his employer will match 8% of his gross income….so $40,980 x 0.08 = $3,278.40 $3,278.40 x 0.15 (marginal tax rate) = $491.72 = $492 6. Decrease If Cindy wants more tax withheld from her paycheck, she needs to reduce her allowances. This is the easiest way for her to try and cover her additional tax liability
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from her self-employment. An alternative would be for her to pay estimated taxes on
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HDF doc - Assignment 6 Answer Compilation 1. 11% ATR =...

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