Question

* Advance Algebra With Financial Application *
Can someone help me ?

Answer 1

The Work I did
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Part I
Scenario 1

Part II
49,500-1,800=44700
I will choose standard. AGI should be 38265

Answer 2

@amistre64 @kelliegirl33

Answer 3

Home mortgage payments and charitable deductions are tax deductible aren't they ?

Answer 4

oops...charitable donations

Answer 5

yea ! because you spent money ?

Answer 6

I dont get #4 :c

Answer 7

i cant really make out what it is they are wanting

Answer 8

@NaCl ....how did you get 38265 as you AGI ?

Answer 9

@kelliegirl33 dont mind that it should be 47700

Answer 10

How do you get the exemption ?

Answer 11

47700 is your AGI.
standard deduction is 5700
itemized deduction is : 2985 + 750 + 2700 = 6435.....you should go with the itemized deductions because they are higher.
I am trying to figure out if federal withholding is an exemption. Do you know ?

Answer 12

I dont know hold on

Answer 13

I don't think it is.....I think your exemptions are $ 6435

Answer 14

Calculate the value of your exemptions. Use $3,650 for each person supported by the income reported. ? What do I do here ?

Answer 15

do I take 6435 and add

Answer 16

6455 cant be my exemption becuase it adds up greater than 5700 :c

Answer 17

no....these will be subtracted to determine taxable income
AGI is 47700
you will take itemized deduction which is 6435
value of exemptions is 3650
I am just trying to figure where federal withholding goes.

Answer 18

Subtract the deductions and exemptions from the adjusted gross income (AGI). This is your taxable income.

6435-3650=2785 ?

Answer 19

ok....AGI is 47700
47700 - (federal withholding)7682.48 = 40017.52
your exemptions are 3650
your deductions are : federal withholding 7682.48
charity 750.00
mortgage payment 2985.48
medical expenses 2700.00
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total deductions are 14,117.96
total of exemptions and deductions = 14,117.96 + 3650 = 17,767.96
So, I think your total taxable income is 47700 - 17,767.96 = 29,932.04.
You might want to get a second opinion on this.....I am not an expert at this stuff.

Answer 20

wait...I messed up....I counted your federal withholding twice...forget about where I subtracted federal withholding from AGI.....I didn't even use that anyways. The answer is the same.

Answer 21

oh, and we itemized your deductions because you will get more of a tax break because it is higher then the standard deduction

Answer 22

I added federal withholding to your itemized deductions.....and yes, you add up all your exemptions and deductions and subtract that from your AGI to get your taxable income

Answer 23

@kelliegirl33 thank you soo much !

Answer 24

Don't thank me yet.....I am hoping it is correct

Answer 25

phi is here...lets see what he has to say...he is smarter then me

Answer 26

you start with gross pay 49500

you subtract 1800 saved in the IRA, to get an adjusted income 47700

the gov't in their geat kindness says they won't tax any amount needed to live on (which they tell you is 3650 for you, and 3650 for each person you support.... in this case, it's only you) so they let you take 3650 exemption off from 47700 to get
44050

next, the gov't likes to "pay off" their voters, so they toss in goodies for certain people:
if you pay interest on a mortgage (this helps people who sell houses and make loans, because more people will buy a house) you can deduct the interest
2985 interest
750 charitity
2700 medical (above the 7.5% of income which means you spent a whole lot on medical)
____
6435 deductions

44050-6435= 37615

you will owe tax on 37615

the federal withholding is the amount you pay to the feds --- rather than get a bill at the end of the year (a nice big one!) they take the money every week.

Answer 27

so you don't even count the income tax withheld ?

Answer 28

it doesn't go under deductions ?

Answer 29

at the end of the year, you figure out your taxes, and compare to how much the gov't took (the withholding). If you didn't send them enough, you send in more to make up the difference.

if you sent in too much (they withheld more than the taxes due), they send a refund

Answer 30

@NaCl ......I suggest you go with phi's answer.....he knows what he is doing

Answer 31

kellie, you got most of it correct.

Answer 32

except for the withholding....that messed me up

Answer 33

Your both are life savers @kelliegirl33 @phi