Final answer:
Julia's taxable income is calculated by subtracting her adjusted gross income deductions and itemized deductions from her salary, resulting in $59,600. To calculate her income tax liability, we apply the relevant tax rates to portions of her income within the specified tax brackets and sum them up. The exact tax liability would involve applying the accurate rates for 2020 and summing these amounts.
Step-by-step explanation:
To calculate Julia's taxable income for 2020, we start with her salary and apply her allowable deductions. With a salary of $65,000, adjusted gross income deductions of $1,200, and itemized deductions of $4,200, her taxable income can be calculated as follows:
- Adjusted Gross Income (AGI) = Salary - Adjusted Gross Income Deductions
- AGI = $65,000 - $1,200 = $63,800
- Julia's Taxable Income = AGI - Itemized Deductions
- Taxable Income = $63,800 - $4,200 = $59,600
The next step is to calculate her income tax liability. Assuming the tax rates have not changed significantly since the tax brackets provided, let's estimate her tax using the bracket for $9,075 to $36,900 at 15%, and then the amount over $36,900 at a hypothetical higher rate since the particular tax rates for 2020 are not provided in the question. We can use a similar method to the one illustrated for calculating taxes on a $20,000 income:
- Tax on the first $9,075 at 10% = $907.50
- Tax on the amount from $9,075 to $36,900 at 15% = 0.15 × ($36,900 - $9,075)
- Tax on the remaining amount over $36,900 at a hypothetical 25% rate (since we don't have the exact rate) = 0.25 × ($59,600 - $36,900)
To find Julia's total tax liability, we would need to add up these three amounts, adjust for the proper tax brackets for 2020, and then round to the nearest whole dollar.