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Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute

ID: 2530686 • Letter: C

Question

Chris, who files single, has an Adjusted Gross Income (AGI) of $100,000. Compute the following, assuming her itemized deductions total $5,000. Round your gross tax liability to the nearest dollar.

If filing for the 2017 tax year:

-

If filing for the 2018 tax year:

AGI

$100,000

Less: larger of itemized or standard deduction

-

Less: Personal exemption

-

Taxable Income

Gross Tax Liabiliy

AGI $100,000 Less: larger of itemized or standard deduction

-

Less: Personal exemption - Taxable Income Gross Tax Liabiliy

Explanation / Answer

CHRIS 2017 AGI $                                                                                                         100,000.00 Less: Larger of itemized or Standard deduction $                                                                                                              6,350.00 Less: Personal Exemption $                                                                                                              4,050.00 Taxable Income $                                                                                                           89,600.00 Gross Tax liability 9325*10%+28625*15%+(89600-37950)*25% Gross Tax liability $                                                                                                           18,138.75 2018 AGI $                                                                                                         100,000.00 Less: Larger of itemized or Standard deduction $                                                                                                           12,000.00 Less: Personal Exemption $                                                                                                              4,150.00 Taxable Income $                                                                                                           83,850.00 Gross Tax liability 9525*10%+29175*12%+(82500-38700)*22%+($83850-$82500)*24% $                                                                                                           14,413.50

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