Not register? Register Now!
Essay Available:
You are here:
Pages:
4 pages/≈1100 words
Sources:
2 Sources
Level:
Other
Subject:
Accounting, Finance, SPSS
Type:
Other (Not Listed)
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
\$ 18.72
Topic:

Sally's Tax Return Calculation (Other (Not Listed) Sample)

Instructions:

Sally is 35 years old, single, and has joint custody of her 12-year-old son, Joshua. Her son’s father pays \$350 a month in child support to Sally. Joshua spends 4 to 5 days a week with Erika and 3 to 4 days a week with his dad. Sally is a financial planner and earns \$80,000 annually (gross pay). She is an employee. Her employer offers a cafeteria plan and Sally has selected the following benefits: Health Insurance (High deductible health plan), family plan - \$4,000; Health Savings Account – Maximum contribution; 401(k) Retirement Contributions - \$10,000 (employer matches with \$5,000). Assuming no other taxable transactions for the year, what is Sally’s federal income tax?

source..
Content:

Sally's Tax Return Calculation
1 Sally is 35 years old, single, and has joint custody of her 12-year-old son, Joshua. Her son’s father pays \$350 a month in child support to Sally. Joshua spends 4 to 5 days a week with Erika and 3 to 4 days a week with his dad. Sally is a financial planner and earns \$80,000 annually (gross pay). She is an employee. Her employer offers a cafeteria plan and Sally has selected the following benefits: Health Insurance (High deductible health plan), family plan - \$4,000; Health Savings Account – Maximum contribution; 401(k) Retirement Contributions - \$10,000 (employer matches with \$5,000). Assuming no other taxable transactions for the year, what is Sally’s federal income tax?
Gross Income

\$80,000

Exclusions

\$4,200

Gross Income Reported on Tax Return

\$75,800

Deductions FOR AGI

\$9,000

\$66,800

Deductions From AGI (Standard or Itemized)

-

Taxable Income

\$66,800

Tax

\$10,375.5

Credits

-

Net Tax Due

\$10,375.5

Tax bracket - Single filer
Sally’s gross income = \$80,000
Exclusions; money received for child support should be excluded; \$350 x 12 months = \$4,200
Gross income reported for tax; \$80,000 - \$4,200 = \$75,800
Deductions from AGI; health insurance family plan \$4,000 + 401k Contribution of \$5000 (employer match of 5000 has already been deducted before Sally received her salary) =9000
AGI; \$75,800 - \$9,000 = \$66,800
Deductions from AGI; No itemized or standard deductions were recorded
Taxable Income = \$66,800
Tax; 10% of the 1st \$9,950 earned = \$995
12% of \$30575 = 3669
22% of \$26,275 = 5708.5
\$995 + \$3,669 + \$5,708.5
=\$10,375.5

...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

• Finance Problems
Description: Opal, Inc. owns a delivery truck that initially cost \$40,000. After a depreciation of \$15,000 had been deducted, the truck was traded-in on a new truck that cost \$50,000. Opal was required to pay the car dealer \$10,000 in cash. What is Opal's basis for the new truck? Answer Step 1 Assets means the ...
1 page/≈275 words| No Sources | Other | Accounting, Finance, SPSS | Other (Not Listed) |
• Granting Summary Judgement and The Natural Law Theory
Description: Granting summary judgement is suitable in an event of depositions, pleadings, and affidavits reveal no presence of a legit issue of material facts whereas moving parties are entitled to prejudice as an issue of law. During assessing if a summary judgement can be accurate the entire court should interpret the...
1 page/≈275 words| No Sources | Other | Accounting, Finance, SPSS | Other (Not Listed) |
• Top 5 Reasons why an Online Masters of Accounting Makes Sense
Description: Flexibility and convenience to solve the dilemma of choosing between your day job or spending your time pursuing your higher education, MACC courses made online...
2 pages/≈550 words| 1 Source | Other | Accounting, Finance, SPSS | Other (Not Listed) |
Need a Custom Essay Written?
First time 15% Discount!