Question

Comprehensive Example Ch 4 pt 1 - Online Class
Salary	$   70,000.00
Corporate Bonds	$   10,000.00
Muni Bonds	$      5,000.00
For AGI Deductions	$      7,000.00
Itemized Deductions	$   10,000.00
Filing Status	single
Withholding	$      5,000.00
Non-Refundable Credits	$      2,000.00
Calculate the below items
Calculate:	2017 tax year	2018 tax year
Gross Income
Adjusted Gross Income
Taxable Income
Income Tax Liability
Tax Due/ (Refund)

Answer 1

2018 tax year table

Particulars	Amount	Amount
Gross income:
Salary	70,000
Corporate bonds	10,000
Gross income		80,000
For AGI deductions		7,000
AGI		73,000
Less:
Standard deduction	12,000
Itemized deduction	10,000
Higher of the two		12,000
Taxable income		61,000
Income tax liability		9,359.50
Payments:
Withholding	5,000
Non-refundable credits	2,000
Total payments		7,000
Tax due		2,359.50

2017 table:

Particulars	Amount	Amount
Gross income:
Salary	70,000
Corporate bonds	10,000
Gross income		80,000
For AGI deductions		7,000
AGI		73,000
Less:
Standard deduction	6,350
Itemized deduction	10,000
Higher of the two		10,000
Balance income		63,000
Less personal exemption		4,050
Taxable income		58,950
Income tax liability		10,476.25
Payments:
Withholding	5,000
Non-refundable credits	2,000
Total payments		7,000
Tax due		3,476.25