Question

1. Federal Tax

You are single, your gross income is $66,341. You claim 1 adjustment of $1250, a
deduction of $2000, and you have one exemption of $8200. Find your AGI
(Adjustable Gross Income) and taxable income. Then find your tax due using the
table. (6 points)
A. AGI=
B. Taxable income =
C. Federal Income Tax due according to the tax table below =

Answer 1

AGI: $66,341

Taxable Income: $57,191

Federal Income Tax Due: $8,995

To calculate the Adjusted Gross Income (AGI), we need to subtract the adjustments and deductions from the gross income:

AGI = Gross Income - Adjustments - Deductions

In this case, the adjustments are $1250, and the deductions are $2000. So, we subtract them from the gross income of $66,341:

AGI = $66,341 - $1250 - $2000 = $57,191

Now, let's find the taxable income by subtracting the exemption of $8200 from the AGI:

Taxable Income = AGI - Exemption

Taxable Income = $57,191 - $8200 = $49,191

Finally, we can use the tax table below to find the federal income tax due:

| Taxable Income | Tax Due |

| --- | --- |

| $40,000 - $50,000 | $4,250 |

| $50,000 - $75,000 | $8,925 |

| $75,000 - $100,000 | $14,100 |

Since the taxable income is $49,191, which falls under the second category ($50,000 - $75,000), the federal income tax due is $8,925.

Explanation:

Answer 2

To calculate the AGI, subtract adjustments from the gross income which results in $65,091. Then, subtract deductions and exemptions from the AGI to find the taxable income of $54,891. Finally, apply the tax rates to the taxable income to get the federal income tax due of $7,824.18.

Calculating AGI and Taxable Income

To find your Adjusted Gross Income (AGI), subtract any adjustments from your gross income.

In this question, you have a gross income of $66,341 and an adjustment of $1,250. So your AGI would be $66,341 - $1,250 = $65,091.

Calculating Taxable Income

Next, calculate your taxable income by subtracting deductions and exemptions from your AGI. With a deduction of $2,000 and an exemption of $8,200, your taxable income would be $65,091 - ($2,000 + $8,200) = $54,891.

Calculating Federal Income Tax DueUsing the provided tax rates, your tax due is a combination of fixed amounts plus a percentage over the threshold of the previous bracket(s). Since your taxable income falls within the third bracket:

You pay 10% on the first $9,950, which is $995.

Next, you pay 12% on the amount between $9,951 and $40,525, which is $40,525 - $9,951 = $30,574.

Twelve percent of $30,574 is $3,668.88.

Finally, you pay 22% on the remaining amount of your taxable income above $40,526.

So that's 22% on $54,891 - $40,526 = $14,365. Twenty-two percent of $14,365 is $3,160.30.

Add up all these amounts to find your total tax due: $995 + $3,668.88 + $3,160.30 = $7,824.18.

Therefore, your federal income tax due would be $7,824.18.