Answered: Find the amount returned to a single…

Find the amount returned to a single taxpayer who made $17000 last year and can deduct $12000. The withholding amount was $2000.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 30P

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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

Find the amount returned to a single taxpayer who made $17000 last year and can deduct $12000. The withholding amount was $2000. (Note: assume no earned income credit)

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