(READ THE ENTIRE QUESTION, there are 3 answers I am looking for, each answer is
ID: 2336753 • Letter: #
Question
(READ THE ENTIRE QUESTION, there are 3 answers I am looking for, each answer is worth 2 points) Using the table that is in the slides from day 5 and 6, calculate the tax liability for the following individual (show your calculations): Ezequiel Holz is a 30 year old man that lives in Peoria, IL. He works as a Business Manager for the local Tax office. His annual salary includes his base income of $49,000 and an incentive bonus of $6,000 if the office meets all its goals. For this past year, Mr. Holz received all of the incentive bonus. You have no other information available. Question 1: What is the tax liability for Mr. Holz? Question 2: Give an example of an ADJUSTMENT he could make to his gross income Question 3: Assuming that his company withheld $10,000 for taxes, does he owe money to the IRS or not? HTML Editor - Paragraph 1-Explanation / Answer
The Income of Mr. Holz is $54,000
The breakdown of taxes is as under
Tax Marginal Tax Rate Effective Tax Rate. 2017 Taxes
Fedral 22.00%. 9.59% $5,180
FIC 7.65% 7.65% $4,131
State 9.30% 9.30% $5022
Total Tax $14,333
Income after Taxes $39,667
2. Mr. Holz can make adjustment as follows
The amount of Illinois State and Federal income tax withheld by the University through the State and Federal Employee's Withholding Allowance Certificates, also known as W-4 tax forms.
The number of withholding allowances you claim determines the amount of your earnings exempt from taxation.
3. Yes, Mr. Holz owe $4,333 (total tax computed in 1 of Rs. 14,333 less tax withheld by company of $10,000) to IRS
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