Question

In: Accounting

Sally was hired at an annual salary of $60,000 on 1/1/20. She elected to contribute $2000...

Sally was hired at an annual salary of $60,000 on 1/1/20. She elected to contribute $2000 to her Flexible Spending Account (FSA) and her employer contributed $500 to the plan. She contributed $5,000 to the company’s 401(k) plan and the company contributed $2500. In addition, she contributed $100 from her payroll to the local United Way campaign. Compute the amount of her 2020 compensation that is subject to FICA taxes and the amount subject to income taxes.

Expert Solution

If you do not change your withholding, you may owe taxes at the end of the year.

Expected tax withholding$0*

Anticipated tax obligation$4,558**

Estimated under payment$4,558

Important Note: The accuracy of this estimate depends on the accuracy of the information you provide. The IRS makes no guarantees about the accuracy of this estimate and accepts no liability resulting from your use of the estimation.

* This is your projected withholding for the year if you make no changes and do not submit a new Form W-4. This number includes Federal income tax withheld and any estimated tax paid.
** This is your expected tax liability for the 2020 tax year reported on the 2020 Form 1040 due to be filed by April 15, 2021. This number includes Federal income tax, additional Medicare tax, and self-employment tax, if applicable.

Adjust Your Results to Avoid Owing a Balance

Use the slider below to select the approximate refund amount you'd like to get.

$0

$0$2,000

For a refund of approximately $0

Your Job, Annual Pre-tax Wages: $60,000

To get your desired refund amount, you will need $456 withheld from each paycheck, $456 more than your current tax withholding.

Your Information

The following is a recap of information entered on the preceding pages on which the above recommendation is based. Use the Edit buttons to go back to pages if you need to edit information.

PREPARED: SUNDAY, OCTOBER 25 2020

About YouEDIT

Filing statusSingle

Can you be claimed as a dependent?No

Total number of jobs1

Income & WithholdingEDIT

Total pre-tax income$60,000

Total nontaxable payroll deductions$8,000

Net income$52,000

Your Job

AdjustmentsEDIT

You have not entered any adjustments.

Adjusted Gross Income

Total income minus Adjustments

AGI$52,000

DeductionsEDIT

Deductions reduce your taxable income

Your standard deduction$12,400

Tax before credits

Taxable income (AGI minus deductions)$39,600

Income tax before credits$4,558

Tax creditsEDIT

You have not entered any tax credits.

Tax after credits

Total tax liability after credits$4,558

Total tax paid so far this year$0

Total tax paid this year if you do nothing$0

Total tax paid this year if you submit a new Form W-4 as recommended $4,558

Please give the good feedback(Thumbup)

ekkarill92 answered 2 years ago

The average individual in a country earns an annual salary of $60,000, of which $24,000 is...

The average individual in a country earns an annual salary of $60,000, of which $24,000 is spent on housing, $10,800 on food, $10,800 on transportation, and $14,400 on other goods and services. Suppose the government in this country mandates that all salaries and the prices of all goods and services be reduced by 40 percent. a. How much does the average individual now earn? b. How much does the average individual now spend on housing, food, transportation, and other goods...

Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid...

Sally Chapel works for Adams Photography in Alberta and earns an annual salary of $53,500.00 paid on a bi-weekly basis. The company’s benefit package includes group term life insurance coverage of two times annual salary; the group term life insurance premium rate is $0.74 per $1,000.00 of coverage. Helen receives a taxable car allowance of $25.00 every pay for using her own car to go to client appointments. Her federal and provincial TD1 claim codes are 3. Helen will not...

A) Maria is single with no dependents and has an annual salary of $125,000. She is...

A) Maria is single with no dependents and has an annual salary of $125,000. She is considering the purchase of a $400,000 house. While she was house-hunting, the 2017 tax act passed, changing the deductions and tax brackets and limiting the deduction for state and local taxes (SALT) to $10,000. Prior to 2018, the standard deduction for a single person was $6,350 and a person exemption of $4,050. A portion of the taxable income-brackets was: Over But Not Over Percentage...

8. You are scheduled to receive annual payments of $60,000 for each of the next 20...

8. You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. What is the difference in the future value in year 20 if you receive these payments at the beginning of each year rather than at the end of each year? 9. You make the following deposits for the next five years into an investment account. All deposits are made at the end of the year...

Sally owns real property for which the annual property taxes are$16,680. She sells the property...

Sally owns real property for which the annual property taxes are $16,680. She sells the property to Kate on April 2, 2020, for $834,000. Kate pays the real property taxes for the entire year on October 1, 2020. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $____ and Kate...

1. A survey of 35 accountants shows the average salary is $60,000 with a population std...

1. A survey of 35 accountants shows the average salary is $60,000 with a population std deviation of $8,000. a) what is a 95 % confidence interval of the true mean of the population.? b) What is the margin of error ? 2. The average time to be served at a diner is 10 minutes with a standard deviation of 3 minutes based on a survey of 20 customers. a) what is a 99 % confidence interval of the true...

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $43,500, paid biweekly,...

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $43,500, paid biweekly, and a garnishment for consumer credit of $415. Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA? If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment? Does the garnishment follow the CCPA? Maximum garnishment allowed: Which of the following is true about fringe benefits? (You may select more...

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,000, paid biweekly,...

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,000, paid biweekly, and a garnishment for consumer credit of $375. Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA ( Consumer Credit Protection Act)? If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment?

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,500, paid biweekly,...

Geraldine Wolfe is a supervisor at Fantastigifts. She has an annual salary of $45,500, paid biweekly, and a garnishment for consumer credit of $435. Assuming that her disposable income is 80 percent of her gross pay per period, does the garnishment follow the CCPA? If not, what is the maximum garnishment allowed for Geraldine’s consumer credit garnishment? (Round your intermediate calculations and final answer to 2 decimal places.) 1. Does the garnishment follows the CCPA? 2. Maximum garnishment allowed:

During 20X1 Beth earned a salary of $150,000. In 20X1, she invested $40,000 for a 20%...

During 20X1 Beth earned a salary of $150,000. In 20X1, she invested $40,000 for a 20% interest in a Grady Memorial Hospital, a limited partnership. Beth does not material participate in this activity. Operations of the activity result in a loss of $325,000, of which Beth’s share is $65,000. For her 20X1 return, would Beth be able to deduct any of the loss relating to this activity? If, so how much?