Your friend Alice is a full-time college student, earned $4,000 working at the campus bookstore over two semesters last calendar year, and also got a part-time job as a cashier in February, earning $9,500. Alice knows that you have been learning about taxes in your personal finance lessons and asks you, “Do I need to file taxes this year? If I do, what is the process like?” Determine
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Your friend Alice is a full-time college student, earned $4,000 working at the campus bookstore over two semesters last calendar year, and also got a part-time job as a cashier in February, earning $9,500. Alice knows that you have been learning about taxes in your
- Determine if Alice needs to file taxes this year and explain your reasoning.
- If you conclude that Alice does need to pay taxes, explain what forms she will need, what the deadlines are, and what method you recommend she use to file her taxes.
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- Ruth has asked for help in determining whether she should receive her $32,500 bonus check in the current year or next year. In the current year, her marginal tax rate is 24% and she anticipates she will be in the 32% marginal tax bracket next year. What advice can you give Ruth? Net revenue from bonus $ Current year Ruth should choose to receive her bonus in the ✓year. Next yearJamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $3,000, and also opened up an IRA, to which she contributed $400 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $1,950 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $2,900, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jamie Lee's current tax liability by completing the form below. Use standard deduction ($6,300) and personal exemption ($4,050). Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. Use 2021 tax rates. I put in these values, but I feel that i am…Anne Smith works as a dentist. In addition to what she does for a living, she runs a restaurant. She has made it clear that she wants to pay an 8 percent tax. How much tax does she owe for the year if her gross income from her job is $1,200,000 and her gross sales from her restaurant are $1,300,000?
- Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $960 per month. Her employer deducts a total of $170 for taxes from her monthly pay. Madeline also pays $115 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $170 per month. Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) With college loan Without college loan Debt Payments-to- Income RatioKim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $970 per month. Her employer deducts $221 for taxes from her monthly pay. Kim also pays $98 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $109 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) Debt Payments-to-Income Ratio Ratio with college loan Ratio without college loanMr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxesnext April. He has outlined his anticipated income for tax seasonand some of his plans going forward. Mr. Smith works several jobs, and he also has some investments.In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…
- Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxesnext April. He has outlined his anticipated income for tax seasonand some of his plans going forward. Mr. Smith works several jobs, and he also has some investments.In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…Cathy Coed is a full-time senior student at Big Research University (BRU). Cathy is considered by most as a brilliant student and has been given a $35,000- per year scholarship. In the current year, Cathy Pays the following amounts to attend BRU: Tuition $26,000 Required lab fees $300 Required books and supplies $1,000 Room and board $7,500 What are the tax consequences (i.e., how much is income) of the $35,000 current’s year scholarship to Cathy? In answering this case, use an online tax service with only the internal revenue code database selected. State your key words and which online tax services you used to arrive at your answer.that explains why Tim does or does not have enough money to pay $200 each month on his credit card. If he does have enough, give him some advice as to whether or not paying $200 each month on his credit card is a good idea. If he does not have enough, give him some advice about what he should do instead. Assume all of his taxes And expenses are as listed in #1-3, and assume that he is 20 years old and is wanting to retire at age 65. Tim will pay 5,812.5 for federal taxes 2,544.8 is the amount Tim takes home each month. Total monthly expenses= $2,15
- Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $1,140 per month. Her employer deducts a total of $260 for taxes from her monthly pay. Madeline also pays $160 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $260 per month. Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) Debt Payments-to-Income Ratio With college loan % Without college loan %. Pls show steps complete.Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxes next April. He has outlined his anticipated income for tax season and some of his plans going forward. Mr. Smith works several jobs, and he also has some investments. In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxes next April. He has outlined his anticipated income for tax season and some of his plans going forward. Mr. Smith works several jobs, and he also has some investments. In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…