Question

Can you analyse the cases of tax return for individuals? Please explain step by step. How to file taxes based on the cases.

Income tax return for individuals:

Case 1.1

Taxpayer José Vega is a store manager and earns $ 48,000 a year. He is married and the father of three children: all under the age of 15 and are not university students. The taxpayer's driver's license, which he presents as identification to fill out the return, is number NYC-4785212

Case 1.2

His wife, Lucy Viera, works as a Walmart cashier and earns $ 18,500 - Currently in high school, she had to pay $ 2,000 for tuition at her university.

Additional information:

1. José obtained an individual retirement account (IRA) and another for his spouse of $ 5,000 each.
2. They paid $ 20,000 for mortgage interest.

Answer 1

Case 1.1

Your 2019 Federal Income Tax Plus FICA : $6,116

Your Income Taxes Breakdown

Tax Type	Marginal Tax Rate	Effective Tax Rate	2019 Taxes*
Federal	12.00%	5.09%	$2,444
FICA	7.65%	7.65%	$3,672
State	0.00%	0.00%	$0
Local	0.00%	0.00%	$0
Total Income Taxes		12.74%	$6,116
Income After Taxes			$41,884
Retirement Contributions			$0
Take-Home Pay			$41,884

* These are the taxes owed for the 2019 - 2020 filing season.

Your 2019 Federal Income Tax Comparison

$0$2k$1k$3k

2018

$2,499

2019

$2,444

• Your marginal federal income tax rate remained at 12.00%.
• Your effective federal income tax rate changed from 5.21% to 5.09%.
• Your federal income taxes changed from $2,499 to $2,444.

Total Estimated 2019 Tax Burden Income Tax$6,116 Sales Tax$1,209 Fuel Tax$308 Property Tax$4,738 Total Estimated Tax Burden$12,371 Percent of income to taxes = 26%

Case 1.2

Your 2019 Federal Income Tax Plus FICA : $1,415

Your Income Taxes Breakdown

Tax Type	Marginal Tax Rate	Effective Tax Rate	2019 Taxes*
Federal	0.00%	0.00%	$0
FICA	7.65%	7.65%	$1,415
State	0.00%	0.00%	$0
Local	0.00%	0.00%	$0
Total Income Taxes		7.65%	$1,415
Income After Taxes			$17,085
Retirement Contributions			$0
Take-Home Pay			$17,085

* These are the taxes owed for the 2019 - 2020 filing season.

Your 2019 Federal Income Tax Comparison

$0

2018

$0

2019

$0

• Your marginal federal income tax rate remained at 0.00%.
• Your effective federal income tax rate remained at 0.00%.
• Your federal income taxes remained at $0.

Total Estimated 2019 Tax Burden Income Tax$1,415 Sales Tax$493 Fuel Tax$308 Property Tax$4,738 Total Estimated Tax Burden$6,954 Percent of income to taxes = 38%