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Income Tax and AGI Questions

This formatted MS Excel file contains tax accounting samples on income tax liabilities, adjustments to and for AGI, and determination of taxable income.

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1. Ashley earns a salary of $35,000, has capital gains of $4,000, and interest income of $3,000 in 2007. Her husband died in 2006. Ashley has a dependent son, Tyrone, who is age 8. Her itemized deductions are $8,000.

a.Calculate Ashley's taxable income for 2007.
Salary $35,000
Capital Gains 4,000
Interest Income 3,000
Personal Exemption (6,800) - Equals $3,400 per individual x 2.
Itemized Deduction (8,000)
2007 Taxable Income $27,200

b.What is her filing status?
Being a surviving widow, with a dependent child, Ashley's 2007 filing status is Head of Household.

2.Homer (age 68) and his wife Jean (age 70) file a ...

Solution Summary

This formatted MS Excel file contains tax accounting samples on income tax liabilities, adjustments to and for AGI, and determination of taxable income.

$2.19