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1. Calculate the taxable income, tax liability and average tax rate for Carson Wentz, of Philadelphia,...

1. Calculate the taxable income, tax liability and average tax rate for Carson Wentz, of Philadelphia, who earned $134,000 in salary, contributed $6,000 in personal retirement contributions, and has $10,000 in deductions. His is filing his taxes as single. You need to show the details of your calculations in order to receive full credit for this question. (Hint: use Table 4-2 to calculate the taxes).


Solutions

Expert Solution

Particulars Amount Amount
Gross income:
Salary $        134,000
Dividends $                   -  
Capital loss deduction $                   -  
Gross income $        134,000
For AGI deductions $           (6,000)
Adjusted gross income $        140,000
Less:
Standard deduction $          12,200
Itemized deduction $          10,000
Higher of the two $          12,200
Taxable income $        127,800
Income tax liability $    24,846.50
[ 14382.5 + ( 127800 - 84200 ) × 0.24 ]

jeff jeffy answered 2 years ago
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