Accounting and Finance Foundations

Unit 9

Accounting and Finance Foundations Unit 9: Taxes 709

Solution:

Standard Deduction Based on Hunter’s Earned Income = Earned Income + $300

$3,395 + $300 = $3,695

Adjusted Gross Income (AGI) = Earned Income + Unearned Income – Adjustments

$3,395 + $400 – $0 = $3,795

Taxable Income = AGI – Deduction

$3,795 – $3,695 = $100

Total Tax Due (To find, go to page 31 of the 1040EZ instructions at

http://www.irs.gov/publications/p17/ch20.html#d0e67735.) = $11

Refund Due = Tax Withheld – Tax Due

$330 – $11 = $319

Taxes

Chapter 21

Student Guide

Income Taxes for Single Dependents (cont'd)