Use the following information to answer the questiom. Also, you can use, if nece
ID: 1244913 • Letter: U
Question
Use the following information to answer the questiom. Also, you can use, if necessary, one
exemption of $3650 and/or a standard deduction of $5700 for individual.
Noel Johnson
Wendy Smith
Income from Salary
$80,000
$92,000
Other Income
-
$8,900
Itemized Deduction
$8,000
$3,000
The income tax for Noel Johnson for 2007 is ______________.
Must assume 2007 tax rate tables.
I keep using the formula in the book and keep getting answers off by a couple of thousand dollars, can someone please show me how to compute this correctly?
Noel Johnson
Wendy Smith
Income from Salary
$80,000
$92,000
Other Income
-
$8,900
Itemized Deduction
$8,000
$3,000
Explanation / Answer
80,000 - 8,000 =72,000
When I looked at the 2007 tax tables
for a single person it was $14,430 and for a head of house hold the taxes were $13,181