Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for

Question

Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $3,150, and also opened up an IRA, to which she contributed $200 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $2,100 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $3,200, most of which was deposited into her regular savings account after paying off her credit card balance.

Estimate Jamie Lee's current tax liability by completing the form below. Use the 2016 values for standard deduction ($6,300) and personal exemption ($4,050). Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories.

Current Financial Situation

WHAT IS HER GROSS INCOME? (wages, salary, investment income, and other ordinary income)

Assets: Monthly Expenses: Checking account $2,950 Rent obligation $335 Savings account $8,100 Utilities $195 (Interest earned last year) $185 Food $190 Emergency fund savings account $5,100 Gas/maintenance $170 (Interest earned last year) $70 Credit card payment $0 IRA balance $470 Savings allocation: (Contribution made last year) $200 Regular savings (monthly) $160 Car $4,200 Rainy day savings (monthly) $50 Liabilities: Entertainment: Student loan $12,000 Cake decorating class $35 Credit card balance $0 Movies with friends $55 (Interest paid last year) $55 Income: Gross monthly salary $3,150

Explanation / Answer

Calculation of Gross Income :-

Particulars Amount($) Salary ($3150*12) 37800 Interest Income from Saving Accounts ($160+$50) 210 Raffle Prize Winnings 3200 Total Gross Income 41210

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