Liama MacDonald just turned thirty years old. She is currently single. Liama has gross wages of $95,000 ( before deferrals) and has had $14,000 withheld for federal income tax. Given the information presented below, and in the chapter, will she likely have too much or too little withheld for the current tax year (do not consider AMT in your calculations)? Based on your analysis, what should Liama do? She estimates total itemized deductions of $11,450. She will not have any interest or dividend income or capital gains. She will not contribute to an IRA. She will defer 5 percent of her gross salary into the qualified retirement plan on a pretax basis.
Liama MacDonald just turned thirty years old. She is currently single. Liama has gross wages of $95,000 ( before deferrals) and has had $14,000 withheld for federal income tax. Given the information presented below, and in the chapter, will she likely have too much or too little withheld for the current tax year (do not consider AMT in your calculations)? Based on your analysis, what should Liama do? She estimates total itemized deductions of $11,450. She will not have any interest or dividend income or capital gains. She will not contribute to an IRA. She will defer 5 percent of her gross salary into the qualified retirement plan on a pretax basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Liama MacDonald just turned thirty years old. She is
currently single. Liama has gross wages of $95,000 (
before deferrals) and has had $14,000 withheld for
federal income tax. Given the information presented
below, and in the chapter, will she likely have too much
or too little withheld for the current tax year (do not
consider AMT in your calculations)? Based on your
analysis, what should Liama do? She estimates total
itemized deductions of $11,450. She will not have any
interest or dividend income or capital gains. She will not
contribute to an IRA. She will defer 5 percent of her
gross salary into the qualified retirement plan on a
pretax basis.
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