Abraham is a single taxpayer with no dependents. He received $297 in bank interest and $1500 for a educational expenses deduction. His charitable contributions were $2000. Use the information to complete the table below: Wages, tips, and other compensation: $47513; Social Security Wages: $47513; Medicare wages: $47513; Federal tax withheld: $4325; State tax withheld: $2790. Assume & 3500 per exemption and use the tax rate for the income interval for $32550 to $78850 of $4481.25 + 25% for taxable income over $32550. What are his total itemized deductions, interest, adjusted gross income, taxable income, tax due, and tax owed?

Question

Alannah Hughes

Mathematics

16 August, 05:24

Abraham is a single taxpayer with no dependents. He received $297 in bank interest and $1500 for a educational expenses deduction. His charitable contributions were $2000. Use the information to complete the table below: Wages, tips, and other compensation: $47513; Social Security Wages: $47513; Medicare wages: $47513; Federal tax withheld: $4325; State tax withheld: $2790. Assume & 3500 per exemption and use the tax rate for the income interval for $32550 to $78850 of $4481.25 + 25% for taxable income over $32550. What are his total itemized deductions, interest, adjusted gross income, taxable income, tax due, and tax owed?

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Christine Erickson · Answer 1

Itemized deductions = 1,500 + 2,000 + 2,790 = 6,290

Adjusted gross income = 47,513 - 6,290 = 41,223

Taxable income = 41,223 - 3,500 = 37,723

Tax = $4481.25 + 25% for taxable income over $32550

Tax due = 4,481.25 + 0.25 (37,723 - 32,550) = 5,774.5

Tax owed = 5,774.50 - 4,325 = 1,449.5

As a conclusion for the solution:

Total itemized deductions = $6,290

Interest = $297

Adjusted gross income = $41,223

Taxable income = $37,723

Tax due = $5,774.50

Tax owed = $1,449.50