Description
Note:
Roberta lives in Texas, which does not have a state income tax. She kept track of how much sales tax she paid.
Roberta is not supposed to have the Earned Income Credit because her investment income is too high
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Explanation & Answer
Attached.
Roberta Santos Personal Income Computation
Gross Income
Salary
Interest:
First Savings Bank
$ 15.200,00
General Electric Corporate Bonds
$ 9.100,00
City Waco, TX bonds
$ 5.400,00
Dividend Income:
Amber, Inc.
$ 7.700,00
Apple common stock
$ 11.200,00
Capital gain on Amber, Inc. common stock
Contest prize
Total Gross Income
Adjustments
Adjusted Gross Income (AGI)
Less Deductible Expenses
Charitable Contribution the American Red Cross
$
Mortgage interest paid on her personal residence.
$
Property taxes paid on her personal residence.
$
Roberta maintained records of her sales taxes paid
$
Taxable Income
Tax thereon
On taxable income of 100,624 (106,124 less capital gain of 5,500)
9,525*10%
$
29,175*12%
$
43,800*22%
$
18,124*24%
$
Total Tax
...