credit reduce your taxe
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You are in the 12% tax bracket and get a credit of $355. How much will the credit reduce your taxes?
Tax credit is a term used in determining the final tax payable. It is the amount of money by which tax liability is reduced. It is an exemption of tax from the total tax liability.
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- Your income is $10,000 over the cutoff for the next lowest tax bracket. Your average tax rate is 10%. Your marginal tax rate is 25%. You contribute $3,000 to a traditional IRA and your contribution is fully deductible, should you decide to go that way. You decide, in fact, to make this a traditional IRA. How much did your contribution actually cost you, in after-tax dollars?You make the following monthly payments. Your total net income (net of taxes) is $4,000. Calculate your savings ratio. Rent $600 Entertainment $300 Car payment $253 $500 Credit card payment $100 $450 Utilities $200 Gasoline $185 Groceries $250 Retirement savings $150 Student loan payment $300 O 17.80%. O 16.18%. O 29.05%. O 29.48%. You spend Save for Later Health insurance Taxes Submit An:D6) Finance Carly has annual gross income of $80,000 and no outstanding debts. Using the conventional front-end DTI formula, how much PITI and HOA can she afford monthly?
- Maximum house you can afford. You have an income of $70,000 per year. You are applyingfor a 4.5%, 80% L TV, 30-year FRM. Property Taxes are 2.75% of the house value, andinsurance is 0.85% of the house value. Your LTO are $525 per month. You will be qualifiedon a 43% back end ratio. What is the maximum house you can afford assuming you haveenough saved to pay the costs at closing? If closing costs are 3.15% of the house value,how much money will you need to bring to closing?After-tax cost of debt Personal Finance Problem Bella Wans is interested in buying a new motorcycle. She has decided to borrow the money to pay the $30,000 purchase price of the bike. She is in the 22% income tax bracket. She can either borrow the money at an interest rate of 5% from the motorcycle dealer, or she could take out a second mortgage on her home. That mortgage would come with an interest rate of 9%. Interest payments on the mortgage would be tax deductible for Bella, but interest payments on the loan from the motorcycle dealer could not be deducted on Bella's federal tax return. a. Calculate the after-tax cost of borrowing from the motorcycle dealership. b. Calculate the after-tax cost of borrowing through a second mortgage on Bella's home. c. Which source of borrowing is less costly for Bella? d. Should Bella consider any other factors when deciding which loan to take out? a. The after-tax cost of borrowing from the motorcycle dealership is %. (Round to the nearest whole…What dollar amount can you expect to receive if you file your taxes under a modest income? Select one:a. At least $350 over 12 months.b. At least $400 over 12 months.c. At least $250 over 12 months.d. At least $300 over 12 months.
- a. Andrea wants to know how much money she will have in 8 years if she deposits her $700 tax refund now and then deposits an additional $70 per month in her account that pays an APR of 1.6% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 8 years? $ b. If Andrea changes her mind and decides that instead of setting aside $70 per month she wants to know how much she will have to deposit each month to save up a total of $5500, we can use goal seek to find the value for PMT which yields $5500 at the end of 8 years. How much money will Andrea need to deposit per month? $Answer each of the following independent questions. Ignore personal income taxes. Required: 1. Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. 2. You have estimated that your educational expenses over the next three years will be $14,500 per year. Your account bears interest at 9 percent per year. Complete the table given below to show that $36,699.50 is the amount you need to fund your educational expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Suppose you invest $4,000 in an account bearing interest at the rate of 12 percent per year. Complete the table to show how your accumulation grows each year to equal $7,896.00 after six years. (Round your answers to 2 decimal places.) Year Beginning Balance Interest 1 2 3 4 5 6 End BalanceMarwin wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified.
- B. Barney and Alyson agree on the price calculated above. Ignoring tax and any other expenses, what is the effective annual return that Alyson has made on her investment? Recall that she has received 2 payments of $37 and the sale price. Give your answer as a percentage to 4 decimal places.Mike just received his income tax refund of $1600, and he needs $1850 to buy a new couch. If his money can earn 3 3/8% simple interest, how long must he invest his money?. Suppose someone his earned income per year is $7000, and the income guarantee, IG, is $5000. And assume that the tN, the rate at which the transfer is received by him is 50%. Then the disposable income of the recipient in relation to earned income is:
