Question

Smith Family

• Single male
• Paid $900 in alimony last year
• No kids
• Earned $37,500 last year from FT job
• Earned $3,000 from PT job
• Rents an apartment for $600/mth
• Spent $500 on moving expenses for a new job
• Paid $2,400 in federal income taxes through his paychecks
• Paid $700 in interest on a student loan
• Gave $500 to a local for profit soccer team for new uniforms
• Bought a new car with a $2,000 down payment
• Contributed $3,000 to a Roth IRA last year

1. What is the Smith family Gross Income?
2. What is the Smith Family AGI?
3. What would the standard deduction be for the Smith family?
4. What is the total of itemized deductions the Smith family can use?
5. How much of the soccer donation can the Smith family claim?
6. What is the Taxable income for the Smith family?
7. How much will the Smiths owe/get in refund for their tax return?
8. What is the average tax rate for the Smith family?

Family based in USA

Answer 1

		yearly
Single male			Incomes		expenditure
Paid $900 in alimony last year					900
Earned $37,500 last year from FT job			37500
Earned $3,000 from PT job			3000
Rents an apartment for $600/mth					7200
Spent $500 on moving expenses for a new job					500
Paid $2,400 in federal income taxes through his paychecks					2400	adjusted with paychecks
Paid $700 in interest on a student loan					700
Gave $500 to a local for profit soccer team for new uniforms					500
Bought a new car with a $2,000 down payment					2000
Contributed $3,000 to a Roth IRA last year					3000
Net			40500		17200
What is the Smith family Gross Income?
Gross income will be= all income + taxes paid			42900
What is the Smith Family AGI?
Paid $900 in alimony last year					900
Earned $37,500 last year from FT job			37500
Earned $3,000 from PT job			3000
50% of taxes paid: Paid $2,400 in federal income taxes through his paychecks					1200
Paid $700 in interest on a student loan					700
Gave $500 to a local for profit soccer team for new uniforms					500
Contributed $3,000 to a Roth IRA last year					3000
total			40500		6300
Net AGI			34200
What would the standard deduction be for the Smith family?
standard deduction is $12000 for salaried individuals filing return as individual
What is the total of itemized deductions the Smith family can use?
Paid $2,400 in federal income taxes through his paychecks					2400
charitable donations					500
total					2900
How much of the soccer donation can the Smith family claim?
as per the new rule, Smith family can claim complete $500
What is the Taxable income for the Smith family?
Individual tax payer can claim upto $4543 + 22% of amount above $39475	$ 4,768.50
Individual tax payer can claim upto $4543 + 22% of amount above $39475
How much will the Smiths owe/get in refund for their tax return?
as per the rule,w e have to pay taxes. Refund can be claimed on interest paid on education loan, charitable donations. However, the taxes paid is appropriate so there will not be refund in this case
What is the average tax rate for the Smith family?
Individual tax payer can claim upto $4543 + 22% of amount above $39475
this comes out to be, 12%