A. Use the following tax information for Thomas Franklin to answer the questions

Question

A. Use the following tax information for Thomas Franklin to answer the questions below:

Gross salary: $41,780

Dividend income: $80

Interest earnings: $225

Itemized deductions: $6,540

Adjustments to income: $1,150

What is Thomas' adjusted gross income?

What amount would Thomas report to the IRS as taxable income?

State your answer in the following format:

1. $xx,xxx

2. $xx,xxx

b. If the local sales tax rate is 8.25%, what is the total sales tax paid on the following items purchased: 2 washcloths at $2.75 each, 2 hand towels at $4.25 each, and 2 bath towels at $7.50 each? Round to the nearest cent and show your work.

C.

Kai has $30,000 of adjusted gross income and $5,000 of medical expenses. He will itemize his federal taxes this year. Federal law in 2018 allows Kai to take a medical deduction of the amount that exceeds 7.5% of his adjusted gross income.

How much of the medical expense can Kai deduct?

State your answer in the following format: $X,XXX

Explanation / Answer

A Gross Salary $41,780 Dividend Income $80 Interest Earnings $225 Gross Income $42,085 Less : Adjustments to Income $1,150 Adjusted Gross Income $40,935 Less : Itemized Deductions $6,540 Taxable Income $34,395 B Washclothes 2*2.75 $5.50 Hand Towels 2*4.25 $8.50 Bath Towels 2*7.50 $15 Total Purchase $29.00 Tax rate @ 8.25% $2.39 Sales Tax Paid $2.39

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.