6.13.0: Exercises
- Page ID
- 171725
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)What is gross income?
How is adjusted gross income derived from gross income?
Is there a difference between AGI and taxable income? If so, what is the difference?
How are deductions different from tax credits?
What are the two components of the FICA tax?
What taxes do employers match?
If you are in the 32% tax bracket, is your tax computed on your full income?
What does it mean for a tax credit to be refundable?
In the following exercises, compute the gross income.
In the following exercises find the adjusted gross income, AGI, based on gross income and deductions.
Gross income was $65,700, $2,280 deposited in a tax-deferred IRA, mortgage interest was $4,715, property taxes were $3,065.
Gross income was $183,200, $5,000 deposited in a tax-deferred IRA, $7,300 in charitable contributions, $8,350 in mortgage interest, and $6,900 in property taxes.
Gross income was $31,200, $1,500 deposited in a tax-deferred IRA account.
Gross income was $41,500, $1,250 deposited in a tax-deferred IRA account, $4,210 in mortgage interest, $2,980 in property tax.
In the following exercises, find the taxable income based on AGI and exemptions.
AGI of $34,560, $2,500 disbursement from a health savings account for a qualifying medical expense.
AGI of $56,750, gift given to a family member of $8,000, $550 in bond interest.
AGI of $120,940, gift given to a family member of $15,000, bond interest of $4,500.
AGI of $28,450, gift given to a family member of $2,000.
In the following exercises, find the taxes owed or refund received based on income tax bill and tax credits.
Tax bill of $5,300, child tax credit of $4,000, earned income tax credit of $1,630.
Tax bill is $17,300, child tax credit of $4,000, child and dependent care tax credit $8,000, lifetime learning credit of $1,000.
Tax bill of $5,205, child tax credit of $6,000, earned income tax credit of $2,450.
Tax bill of $11,300, child tax credit of $2,000, earned income tax credit of $650, child and dependent care credit of $4,000.
Tax bill of $13,750, child tax credit of $2,000, earned income tax credit of $780, child and dependent care credit of $2,000.
In the following exercises, determine the SSI tax and the total FICA tax for the given incomes.
Earning for pay period were $3,500.
Earnings for pay period were $1,400.
Earnings for pay period were $3,150.
Earnings for the year were $135,000.
Earnings for the year were $203,400.
In the following exercises, find the income tax owed using the taxable income and the tax table below, for a person filing single.
| Bracket | Lower Income Limit | Upper Income Limit | Tax Rate |
|---|---|---|---|
| 1 | 0 | $10,275 | 10% |
| 2 | $10,276 | $41,775 | 12% |
| 3 | $41,776 | $89,075 | 22% |
| 4 | $89,076 | $170,050 | 24% |
| 5 | $170,051 | $215,950 | 32% |
| 6 | $215,951 | $539,900 | 35% |
| 7 | $539,901 | 37% |
Taxable income of $36,250.
Taxable income of $63,500.
Taxable income of $209,450.
Taxable income of $92,250.