BUSI 223 Application Based Activity Planning your Tax Strategy solutions complete answers
Help Jamie Lee With Her Income Taxes
Activity Description
In this activity, you will play the role of Jamie Lee's tax accountant. Jamie Lee comes into your office seeking help understanding and computing her annual income taxes.
The estimated time to complete the activity is 15-20 minutes. You should start when you have enough time to critically think through the scenario. However, if you need to exit the activity before completion, you will return to where you left off when you re-enter.
Learning Objectives
After completing the activity, you will be able to:
· LO 1 Calculate Jamie Lee’s Adjusted Gross Income (AGI).
· LO 2 Discuss Jamie Lee’s filing status and deductions.
· LO 3 Calculate her marginal tax rate.
Evaluation and Scoring
You will be asked to respond to a variety of questions as you complete the activity, and your responses may impact both your score and what happens next.
You will not have the ability to go back and change your answer, so consider each answer option carefully.
Scoring is calculated as follows:
1. Points are received based on the answer you select for each question, and questions are tied to multiple scoring categories associated with the learning objectives.
2. Your scores for each category are based on the total number of points you earn for the associated questions.
3. You will receive one final activity score at the end of the activity that combines your results from each category.
Your instructor has assigned a total point value for this assignment. Your assignment grade is calculated based on the final percentage score you earn at the end of the activity.
Ok, let’s go ahead and calculate your Adjusted Gross Income.
What is that?
What is Jamie Lee’s gross annual income from wages?
What is Jamie Lee’s passive income?
Does Jamie have any income other than wages and passive?
What is Jamie’s gross taxable income?
What adjustments to gross income is Jamie Lee able to make?
What is Jamie Lee’s Adjusted Gross Income (AGI)?
So that is the final income I owe taxes on?
What is Jamie Lee’s filing status?
Is Jamie Lee better off itemizing her deductions or claiming the standard deduction?
What is Jamie Lee’s standard deduction? (reference ‘Marginal Tax Rates’ tab)
What is Jamie Lee’s taxable income? Recall that her Adjusted Gross Income was $26,100 as calculated earlier.
Using the marginal tax rates table, what is Jamie Lee’s marginal income tax rate?
Does this mean that all of her income is taxed at 12%?
How much income tax would Jamie pay? (Round to the nearest dollar.)
