Sally's Tax Return Calculation (Other (Not Listed) Sample)
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..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
Adjusted Gross Income (AGI)
$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
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