In: Accounting
Amishi had a tax liability of $5,985 last year. In addition, she owed other taxes of $733. She was entitled to tax credits of $648 and withholding amounted to $480 per month.
Calculate the amount of the refund or the amount of additional taxes due (as the case may be).
Enter this amount followed by the word 'Refund' or the word 'Due'. Example: 822 Due
Steps: 1 First we should deduct tax credits from tax liablity
Steps 2 Now add other taxes due to the tax liability.
Steps 3 now make a comparison of total taxes vs withholdings, if tax is more there is a additional taxes de, otherwise there is a refund
Tax Liability |
$5,985 |
|
Less: Tax credits |
648 |
|
5,337 |
||
Add: Other taxes |
733 |
|
Total taxes |
6,070 |
|
Withholding ($480 x 12) |
$ 5,760 |
|
Taxes > Withholding, it’s a tax due |
||
(6070-5760) |
$ 310 |
Due |