T12S-Chp-02-3-Tax Benefit Rule Illustration

T12S-Chp-02-3-Tax Benefit Rule Illustration - 10,150.00...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Solution eb82ca2b956f09391bdb8c1cf50cd7e7d7d49f00.xlsx Tax Benefit Rule Taxpayer is single with one exemption 2010 2011 Salary $70,000.00 $75,000.00 Federal income tax witheld (14,000.00) (15,000.00) FICA withheld (7.65%) (5,355.00) (5,737.50) North Carolina Income tax withheld (3,500.00) (4,000.00) Take home pay 47,145.00 50,262.50 Charitable contributions 500.00 500.00 Home mortgage interest 2,000.00 2,000.00 Property taxes on home 500.00 500.00 State income taxes 3,500.00 4,000.00 Total deductions before exemption 6,500.00 7,000.00 Exemption 3,650.00 3,700.00 Total deductions
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 10,150.00 10,700.00 Taxable income (before considering impact of state income tax refund) $36,995.00 $39,562.50 In 2011, taxpayer receives state income tax refund for 2010 of: $1,000.00 2010 2011 How much of the state income tax refund is included in federal taxable income (and when)? $800.00 Assume tax law in 2011 is same as in 2010, except tax rates, exemption amounts and standard deduction amounts. See also textbook page 2-10 for more on tax benefit rule. Federal Standard deduction (Single) $5,700.00 $5,800.00...
View Full Document

This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

Ask a homework question - tutors are online