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Calculating an Individual's Tax Liability

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Chris, a single taxpayer, had the following income and deductions during 2010?

Salary $55,000
Interest on bank account 300
Tax-exempt interest 200
Deduction for AGI 4,000
Itemized deductions 8,000
Taxes withheld 6,500

Calculate Chris's tax liability or refund for 2010.

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Solution Summary

This solution illustrates how to calculate an individual taxpayer's income tax liability.

Solution Preview

Chris's tax refund will be $1,50, calculated as follows:

Salary $55,000
Interest on bank account 300
Gross ...

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