1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37.950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 $4050 Married Filing Jointly (b) What is Kevone's AGI? up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37.950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050 Head of Household up to $13,350 up to $50,800 up to $131,200 up to $212,500 up to $416,700 up to $444,550 above $444,550 $9350 $4050 (c) Should Kevone itemize or take the standard deduction? How much is his deduction?
1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.) Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Single up to $9325 up to $37.950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 $4050 Married Filing Jointly (b) What is Kevone's AGI? up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 $4050 (a) What is Kevone's gross income? Married Filing Separately up to $9325 up to $37.950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050 Head of Household up to $13,350 up to $50,800 up to $131,200 up to $212,500 up to $416,700 up to $444,550 above $444,550 $9350 $4050 (c) Should Kevone itemize or take the standard deduction? How much is his deduction?
Chapter3: Income Sources
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:1.Kevone is single and works for a local tech firm. He earned $87,000 last year in taxable
wages, had $850 in interest on his savings. He contributed $3500 to an IRA. For deductions, he
paid $8500 in real estate taxes, paid $2000 in sales taxes, paid $1500 for memberships in
professional organizations, and made a $1000 gift to charity. He is eligible for $4000 in various
tax credits. (Use the table below for marginal tax rates, standard deductions and exemptions.)
Tax Rate
Single
up to $9325
up to $37,950
up to $91,900
up to $191,650
up to $416,700
up to $418,400
above $418,400
$6350
10%
15%
25%
28%
33%
35%
39.6%
Standard
deduction
Exemption $4050
(per person)
Married Filing
Jointly
up to $18,650
up to $75,900
up to $153,100
up to $233,350
up to $416,700
up to $470,700
above $470,700
$12,700
(b) What is Kevone's AGI?
$4050
(a) What is Kevone's gross income?
Married Filing
Separately
up to $9325
up to $37,950
up to $76,550
up to $116,675
up to $208,350
up to $235,350
above $235,350
$6350
$4050
Head of Household
up to $13,350
up to $50,800
up to $131,200
up to $212,500
up to $416,700
up to $444,550
above $444,550
$9350
$4050
(c) Should Kevone itemize or take the standard deduction? How much is his deduction?
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