Chapter 03 Taxes in Your Financial Plan

90. (p. 79) Janet is completing her federal income taxes for the year and has identified the amounts listed below. How much can she rightfully deduct?

· AGI: $40,000
· Medical and dental expenses: $600
· State income taxes: $500
· Mortgage interest: $6,500
· Charitable contributions: $750
A. $1,850
B. $6,500
C. $7,250
D. $7,750

91. (p. 79) Sam and Diane are completing their federal income taxes for the year and have identified the amounts listed below. How much can they rightfully deduct?

· AGI: $90,000
· Medical and dental expenses: $10,000
· State income taxes: $4,500
· Mortgage interest: $10,500
· Charitable contributions: $2,000
A. $13,750
B. $20,250
C. $22,500
D. $25,000
E. $27,000

92. (p. 82) Jason’s household consists of himself, his wife, and their 2-year old daughter. How much can Jason claim for his exemptions?
A. $1,000
B. $3,500
C. $7,000
D. $10,500
E. $15,000

93. (p. 83) Using the table below, calculate the taxes for an individual with taxable income of $20,000.

.png”>
A. $802.50
B. $2,598.75
C. $3,000
D. $4,481.25
E. $20,000

94. (p. 83) Using the table below, calculate the taxes for an individual with taxable income of $30,000.

.png”>
A. $802.50
B. $3,678.75
C. $4,098.75
D. $4,500
E. $4,481.25

95. (p. 83) Using the table below, calculate the taxes for an individual with taxable income of $50,000.

.png”>
A. $4,481.25
B. $8,843.75
C. $12,500
D. $15,253.75
E. $16,056.25

96. (p. 84) If Jack was in a 28% tax bracket and received a $2,000 tax deduction, how much would his taxes be reduced?
A. $28
B. $56
C. $560
D. $1,440
E. $2,000

97. (p. 84) If Diane was in a 28% tax bracket and received a $2,000 tax credit, how much would her taxes be reduced?
A. $28
B. $56
C. $560
D. $1,440
E. $2,000

98. (p. 84) George Franklin paid taxes of $4,400 on a taxable income of $42,000. What was his average tax rate?
A. 10%
B. 10.5%
C. 15%
D. 28%
E. 85.5%