Exam 6: Income Taxes

Use the 2006 tax schedule for married taxpayers filing jointly below.Which equation represents the taxable income in the interval over $123,700 but not over $188,450? ​ ​

A single mother who files head of household pays a tax of $10,881.Use the table to find her taxable income interval. ​

Which statement is NOT true about the differences between the income on a W-2 and that on a 1099 form?

Tax tables list taxable income in intervals.

Jennifer and Ken Citizen have a combined income of $145,148.They have 1099 forms which report $4,002 in interest and dividends.During the year,they paid $6,487 in property tax;$9,688 in state and local taxes;$17,573 in federal income tax;and $14,021 in Social Security and Medicare taxes.Tax Freedom Day has been discussed as a concept by which the taxes a family pays are paid first throughout the year until they are paid in full.What is the Tax Freedom Day for this family? Assume it is not a leap year.

Asa is single and had taxable income last year of $40,375.At the beginning of the new year,he decided to save 12% of last year's taxable income in a tax -deferred savings plan.His company also started a flexible spending account for medical contributions.Asa's medical insurance is 72.07 per semi-monthly pay.How much can Asa expect to save in taxes this year due to these changes? ​

Conrad and Jill have a taxable income of $63,670.They discovered that they can receive a $1,500 tax credit for purchasing an energy -efficient furnace.How will this tax credit affect their taxes?

A W-2 is an income statement that lists any money earned from interest.

Dawn is verifying the accuracy of her paycheck.She earns $12 an hour and works 40 hours each week.Her biweekly deductions are Social Security 6.2%,Medicare 1.45%,federal withholding tax $73.25,state withholding tax $22.50,and health insurance $37.47.What is her net pay if she is paid biweekly?

What word is synonymous with take-home pay?

The Mancuso family consists of five children,two parents,and a live-in great aunt.Mr.Mancuso supports each family member;therefore,he can take eight exemptions on his 1040 tax form.

Angela's effective federal tax rate is 17%.Last year,she was able to reduce taxable income by contributing $250.00 per semi-monthly paycheck to her tax -deferred retirement account and $72.07 per semi-monthly paycheck to her flexible spending account.How much did she reduce her federal taxes by if her gross semi-monthly pay is $2,819.96?

Juan is a single father of 3,filing as a Head of Household.His income reported on his W-2 was $98,066 and he had interest and dividend income reported on a 1099 of $2,454.During the year,Juan had state and local taxes withheld $5,864,paid property tax of $6,487,paid $6,846 in mortgage interest,and had $8,147 in charitable contributions.The exemption amount for this year is $4,000.Use the table below to calculate their tax.If Juan's W-2 showed Federal Tax Withheld of $11,799,will he be receiving a refund or owe more taxes on April 15? How much? ​

Schedule A can be filed with any tax form to itemize deductions for items such as property taxes and charitable contributions paid.

Benjamin started a new job and wants to verify that his net pay has been computed correctly.His salary is $67,679.04 per year.Ben is paid semiannually and has the following deductions: Social Security tax 6.2%,Medicare tax 1.45%,federal withholding 8.4%,state withholding 2.2%,city withholding 1.5%,retirement contributions $474.15,and medical and dental insurance $72.07.What should his net pay be for this pay period?

Tanika is filing single and has a taxable income of $110,000.It took many hours throughout the year to keep records of deductions and to file her taxes at the end of the year.Use the table below to calculate her taxes.If an effective tax rate is the percentage of gross income paid in federal taxes,what is Tanika's effective tax rate? ​

Maria and Juan are married,filing jointly.Their taxable income is $154,849.Use the table below to write an equation to determine their tax.Then calculate their tax. ​

Roland had $10,500 in medical expenses last year and has no medical insurance.The IRS allows medical expense deductions for the amount that exceeds 7.5% of a taxpayer's adjusted gross income.If Roland's adjusted gross income is $31,000,how much can he claim as a medical deduction?

An income tax filer who is single or married filing jointly,with no dependents and income less than $100,000,may be able to file a 1040EZ form.

John and Loretta Smith are in the 28% tax bracket.Their joint taxable income is $134,899.If the first $16,050 is taxed at 10%,with the remainder at 28%,how much tax will they owe?