Chapter 18.III, Problem 21RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

As a newly hired IRS trainee, you have been asked to calculate the amount of tax refund or tax owed for the following taxpayers.

Tax |
Tax |
Other |
Refund/Owe |
|||||||

Name |
Liability |
Credits |
Taxes |
Payments (circle one) Amount |
||||||

21. | Ellis | $5,320 | $2,110 | $325 | $4,650 | Refund/Owe |

To determine

**To calculate:** The amount of tax refund or tax owed of person E if the tax liability is $5,320, tax credits is $2,110 and other taxes is $325 and payments are $4,650.

Explanation

**Given Information:**

The person E has the tax liability is $5,320, tax credits is $2,110 and other taxes is $325 and payments are $4,650.

**Formula used:**

The formulas used for the calculation are listed below:

The total tax is calculated by the formula given below:

To check the amount is tax refund or tax owed. It is needed to see the difference between total payments and total tax. If the tax payments are greater than total taxes, the difference is tax refund and if the tax payments are less than total taxes, the difference is tax owed.

**Calculation:**

Taxable income is defined as the income to which tax rates are functional in order to discover the total amount of tax payable for the year. Tax credits are the amount of dollar subtracted from the tax liability.

The followings steps are used to calculate

Step 1: The total tax is calculated by the formula given below:

So,

Sect-18.I P-1TIESect-18.I P-2TIESect-18.I P-3TIESect-18.I P-4TIESect-18.I P-1RESect-18.I P-2RESect-18.I P-3RESect-18.I P-4RESect-18.I P-5RESect-18.I P-6RE

Sect-18.I P-7RESect-18.I P-8RESect-18.I P-9RESect-18.I P-10RESect-18.I P-11RESect-18.I P-12RESect-18.I P-13RESect-18.I P-14RESect-18.I P-15RESect-18.I P-16RESect-18.I P-17RESect-18.I P-18RESect-18.I P-19RESect-18.II P-5TIESect-18.II P-6TIESect-18.II P-7TIESect-18.II P-8TIESect-18.II P-9TIESect-18.II P-1RESect-18.II P-2RESect-18.II P-3RESect-18.II P-4RESect-18.II P-5RESect-18.II P-6RESect-18.II P-7RESect-18.II P-8RESect-18.II P-9RESect-18.II P-10RESect-18.II P-11RESect-18.II P-12RESect-18.II P-13RESect-18.II P-14RESect-18.II P-15RESect-18.II P-16RESect-18.II P-17RESect-18.II P-18RESect-18.II P-19RESect-18.II P-20RESect-18.III P-10TIESect-18.III P-11TIESect-18.III P-12TIESect-18.III P-13TIESect-18.III P-14TIESect-18.III P-1RESect-18.III P-2RESect-18.III P-3RESect-18.III P-4RESect-18.III P-5RESect-18.III P-6RESect-18.III P-7RESect-18.III P-8RESect-18.III P-9RESect-18.III P-10RESect-18.III P-11RESect-18.III P-12RESect-18.III P-13RESect-18.III P-14RESect-18.III P-15RESect-18.III P-16RESect-18.III P-17RESect-18.III P-18RESect-18.III P-19RESect-18.III P-20RESect-18.III P-21RESect-18.III P-22RESect-18.III P-23RESect-18.III P-24RESect-18.III P-25RESect-18.III P-26RESect-18.III P-27RESect-18.III P-28RESect-18.III P-29RESect-18.III P-30RECh-18 P-1CRCh-18 P-2CRCh-18 P-3CRCh-18 P-4CRCh-18 P-5CRCh-18 P-6CRCh-18 P-7CRCh-18 P-8CRCh-18 P-9CRCh-18 P-10CRCh-18 P-11CRCh-18 P-12CRCh-18 P-13CRCh-18 P-14CRCh-18 P-1ATCh-18 P-2ATCh-18 P-3ATCh-18 P-4ATCh-18 P-5ATCh-18 P-6ATCh-18 P-7ATCh-18 P-8ATCh-18 P-9ATCh-18 P-10ATCh-18 P-11ATCh-18 P-12ATCh-18 P-13ATCh-18 P-14ATCh-18 P-15ATCh-18 P-16ATCh-18 P-17ATCh-18 P-18ATCh-18 P-19ATCh-18 P-20ATCh-18 P-21ATCh-18 P-22ATCh-18 P-23ATCh-18 P-24ATCh-18 P-25ATCh-18 P-26ATCh-18 P-27ATCh-18 P-28ATCh-18 P-29ATCh-18 P-30AT

Elementary Technical Mathematics

Finite Mathematics and Applied Calculus (MindTap Course List)

Calculus (MindTap Course List)

Intermediate Algebra

Mathematical Excursions (MindTap Course List)

Multivariable Calculus

Essentials Of Statistics

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Finite Mathematics

Single Variable Calculus: Early Transcendentals, Volume I

Single Variable Calculus

Elementary Geometry For College Students, 7e

Calculus: Early Transcendental Functions

Understanding Basic Statistics

Precalculus: Mathematics for Calculus (Standalone Book)

Mathematical Applications for the Management, Life, and Social Sciences

Calculus: An Applied Approach (MindTap Course List)

Calculus: Early Transcendentals

Applied Calculus

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Probability and Statistics for Engineering and the Sciences

Statistics for The Behavioral Sciences (MindTap Course List)

Calculus: Early Transcendental Functions (MindTap Course List)

Elements Of Modern Algebra

Trigonometry (MindTap Course List)

Single Variable Calculus: Early Transcendentals

Calculus of a Single Variable

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Study Guide for Stewart's Multivariable Calculus, 8th

Finite Mathematics for the Managerial, Life, and Social Sciences

Elementary Geometry for College Students

Mathematics: A Practical Odyssey

Multivariable Calculus

Research Methods for the Behavioral Sciences (MindTap Course List)

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Calculus (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Mathematics For Machine Technology

College Algebra (MindTap Course List)

Statistics for Business & Economics, Revised (MindTap Course List)