Refer to the Tax Rate Schedules to answer the following questions. Calculate the
ID: 2329846 • Letter: R
Question
Refer to the Tax Rate Schedules to answer the following questions.
Calculate the 2018 tax liability and the tax or refund due for each situation.
Round your answers to the nearest dollar.
2018 Tax Liability Tax or Refund a. Mark is single with no dependents and has a taxable income of $60,400. He has $9,100 withheld from his salary for the year. $ $ b. Harry and Linda are married and have taxable income of $60,400. Harry has $5,080 withheld from his salary. Linda makes estimated tax payments totaling $2,610. $ $ c. Aspra is single. His 20-year-old son, Calvin, lives with him throughout the year. Calvin pays for less than one-half of his support and his earned income for the year is $2,860. Aspra pays all costs of maintaining the household. His taxable income is $60,400. Aspra’s withholdings total $8,000. $ $ d. Randy and Raina are married. Because of marital discord, they are not living together at the end of the year, although they are not legally separated or divorced. Randy's taxable income is $25,500, and Raina's is $60,400. Randy makes estimated tax payments of $1,500, and Raina has $9,400 in tax withheld from her salary. Assume they choose to file as married filing jointly. $ $Explanation / Answer
a) Mark 2018 tax is $9228 {$4453.5 + [22% ($60400 - $38700)]}. He has a tax due of $128 ($9228 - $9100).
b) Harry and Linda 2018 tax filing a joint return is $6867 {$1905 + [12% ($60400 - $19050)]}. They receive a refund of $823 ( $6867 - $5080 - $2610).
c) Aspra qualifies to file as a household. Aspra's 2018 tax is $7836 {5944 + [22% ($60400 - $51800)]}. Aspra wil receive a refund of $164 ($7836 - $8000). Note: calvin qualifies as a dependent as a qualifying relative.
d) Randy and Raina 2018 tax filing a joint return is $10777 {$8907 + [22% ($85900 - $77400). They receive a refund of $123 ($10777 - $1500 - $9400).