Answered: Determine Amy’s taxable income for 2019…

Determine Amy’s taxable income for 2019 if she has $40,000 of salary income, is single, and claims the standard deduction Required Determine Amy’s income tax liability for 2019.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 50P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Determine Amy’s taxable income for 2019 if she has $40,000 of salary income, is single, and claims the standard deduction
Required
Determine Amy’s income tax liability for 2019.

Expert Solution

Step 1

Amy' taxable income = Gross income- standard deduction

Standard deduction allowed for single tax payer for 2019 is $ 12200.

So the taxable income= $ 40000- $ 12200

= $ 27800

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