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- Calculate Steve and Nancy’s federal income tax based on the information given in Exercise 4.
- Suppose Britt earned $38,995 last year. She is single and has two dependent children. Her state and local income taxes
were $2,075 last year, she paid $3,073 in mortgage interest, and she gave $575 to charity. Her fi ling status is head of
household. She has no other deductible expenses. Using this information, calculate her total federal income tax for the year. - Suppose Gene earned $37,450 last year and his wife Kelly made $32,095. They do not have any dependent children,
and their deductible expenses were not large enough to itemize.
a. If Gene were single, how much would he owe for federal income taxes for the year?
b. If Kelly were single, how much would she owe for federal income taxes for the year?
c. As a married couple fi ling their taxes jointly, how much do Gene and Kelly owe for federal income taxes for the year?- Suppose Jean earned $54,545 last year and her husband Kelvin earned $15,000. They have two dependent children.
a. If Jean were single, how much would she owe for federal income taxes? (Assume that she claims herself and the
two children as dependents.)
b. If Kelvin were single, how much would he owe for federal income taxes? (Assume he claimed only himself as a dependent.)
c. As a married couple fi ling their taxes jointly, how much do Jean and Kevlin owe for federal income taxes for the year?- What do Exercises 10 and 11 tell you about the “marriage penalty”?
C. Calculating Tax Withholding- Mike earns a $38,905 salary and is paid biweekly. His biweekly deductions for health insurance and other benefi ts
amount to $177.92. Mike is single and claims three exemptions on his W-4 form. His fi ling status is single.
a. Calculate Mike’s biweekly gross salary.
b. Calculate the amount of Mike’s withholding allowances.
c. Calculate Mike’s biweekly income subject to tax withholding.
d. How much will his employer withhold from his check for federal income taxes?- Lita makes $18,035 annual salary. She is paid biweekly. She has no deductions for health insurance or other benefi ts.
She claims married fi ling status with four dependents on her W-4.
a. Calculate Lita’s biweekly gross salary.
b. Calculate the amount of Lita’s withholding allowances.
c. Calculate Lita’s biweekly income subject to tax withholding.
d. How much will her employer withhold from her check for federal income taxes?- Surima earns $111,925 in salary. She is paid biweekly. Her biweekly deduction for health insurance and other benefi ts
is $286.35. She is married and claims 0 exemptions on her W-4 form. How much should her employer withhold from
each paycheck for federal income taxes? If she instead fi les her W-4 requesting taxes be withheld at the higher single
rate, what would her withholding amount be?
Exercises 9.2 395