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The Park family consists of the following:
•Jackie O. Park; age 40; SSN: XXX-XX-XXXX; business analyst; single; unmarried
•Leslie T. Park; age 16; SSN: 000-00-0000; daughter; high-school student; lives at home
•Alex K. Park; age 12; SSN: NNN-NN-NNNN; son; middle-school student; lives at home
Pertinent information:
•Address: 132 Oakbrook Drive, Houston, Texas 77091
•The Parks do not want to contribute to the presidential election campaign
•Jackie does not receive child support. She pays all of the household expenses including the upkeep of Leslie and Alex. Only Jackie can claim Leslie and Alex as dependents.
•Using the correct Tax Rate Schedule (Not to be confused with the IRS Tax Tables) calculate the tax payer’s Tax Liability
•Jackie also operates a realty company on a part-time basis. Her income from this business is from real estate sales during the year. She is a sole proprietor and her company’s name is Jaleal Realty Company. Jackie rents a small office to operate this business.
Jackie had the following earnings on her W-2:
•Wages: $55,159
•Federal tax withheld: $7,460
•Social Security tax withheld: $3,420
•Medicare tax withheld: $800
Other tax data:
•Texas State’s general sales tax deduction allowed is $924.
•Jackie received $610 of personal interest income from her bank.
•She donated $230 in cash to her church during the year.
•Real estate taxes paid on her personal residence were $1,980, and the mortgage interest paid to her bank in New York, NY on the primary residence for the year was $16,000.
•Medical expenses for the family were as follows: ◦medical insurance premium $3,244
◦payments for doctor’s visits $1,760
◦$850 was paid for dentists
◦$230 for prescription drugs
•Using the proper tax rate schedule for her filing status, calculate Jackie’s tax liability.
10 years ago
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