Brandon is filing his taxes for 2015. He earned $87,000 in 2015. He spent $4,000
ID: 1209180 • Letter: B
Question
Brandon is filing his taxes for 2015. He earned $87,000 in 2015. He spent $4,000 of pre-tax wages on health insurance. He paid $6,000 in mortgage interest and donated $3,C00 to charity. He qualifies for a $200 tax credit for education expenses and had $10,000 withheld in taxes already. Calculate Brandon's final payment/refund due. [For this question, assume that his personal exemptions total $6,800, his standard deduction is $12,400, and the marginal tax rate is 10% on the first $10,000 in taxable income, 15% on the next $30,000, and 25% on the next $100,000.]Explanation / Answer
Gross Income $87,000 Tax Slab wise Income per slab Tax Tax free expenditure $13,000 10% $10,000 $1,000 Adjusted gross income $74,000 15% $30,000 $4,500 Standard Deductions $12,400 25% $14,800 $3,700 Personal Exemptions $6,800 Total Tax $9,200 Taxable Income $54,800 Regular Taxes $9,200 All Tax Credits $200 Total Tax with Credits $9,000 Tax Pre-payments $10,000 Estimated Refund $0