Taxable Income
What is the amount called that is used to reduce your taxable income?
standard deduction
Main tax filing form
1040 form
Filing status if you are unmarried and have no dependents
single
Gary's taxable income was $85,234 last year. If he is single, how much money does he owe in federal taxes?
$13,837
Chloe is single and Makes $67,987 a year. What is her taxable income?
$67,987 - $13,850 = $54,137
Your employer gives you this form in January which summarizes your earnings for the year
W-2
Filing status if you have dependents and are unmarried
head of household
a. What is his taxable income?
b. How much federal tax does he owe?
a. $76,251
b. $12,088
Kyndria's W-2 says that she made $45,000 from one job and another W-2 says that she made $65,000 from another job last year. If she is single, what is her taxable income?
total income: $45,000 + $65,000 = 110,000
taxable income: 110,000 - 13,850= $96,150
You fill this form out when you get a new job so your employer knows how much to withhold from your paycheck for tax purposes
W-4
filing status if your spouse passed away within the last 2 years and you have a dependent child
Qualifying Surviving Spouse
Kennedy made $86,000 last year and Jamarcus made $88,000 last year. If they file as married filing jointly,
a. What is their taxable income?
b. How much taxes do they owe?
a. (88,000 + 86,000) - 24,800 = 149,200
b. 149,200 x 0.22 - 9385 = $23,439
Darelin's W-2 says that she made $87,000 last year. Her husband's W-2 says that he made $33,000 last year. If they are married filing jointly, what is their taxable income?
total income: 87,000 + 33,000 = 120,000
taxable income: 120,000 - 27,700 = 92,300
You file taxes with this form if your wages are not withheld from each paycheck
1099 form
Widows can continue to file as married filing jointly for how long after their spouse passes away?
1 year
If Jalen makes $101,000 last year and files as head of household, what is
a. his taxable income?
b. federal taxes owed?
a. 101,000 - 18,650 = $82,350
b. $82,408
Shaun has one dependent and is not married. His W-2 says that he made $133,000 last year. What is his taxable income?
filing head of household
133,000-20,800=112,200
IRS allows taxpayers to round to the nearest______.
dollar
Filing status for widows with no dependents whose spouse passed away more than a year ago
single
If Jacob made $436,987 last year and files as single, how much money does he owe in federal taxes?
436,987 - 13,850 = 423,137 taxable income
423,137 x 0.35 - 28,105.50 = $119,992.45