Questions from Personal Finance

Q: As a result of watching a financial news network on cable,

As a result of watching a financial news network on cable, reading articles in some business magazines, and listening to a coworker tell how her portfolio doubled in value in six months, Brad is now c...

Q: FICA Contributions. Brian makes $27,000 per year.

FICA Contributions. Brian makes $27,000 per year. How much can he expect to contribute to FICA taxes in 2018? How much will his employer contribute?

Q: Capital Gains Tax. Stephen’s salary is $34,000 in

Capital Gains Tax. Stephen’s salary is $34,000 in 2018. In 2018, he sold stock that he had held for nine months for a gain of $1,900. How much tax must he pay on this capital gain? How much would the...

Q: Deductions. Emily and Paul are married and will file a joint

Deductions. Emily and Paul are married and will file a joint return for 2018. The standard deduction for their filing status is $24,000. They have the following itemized deductions: Should Emily and P...

Q: Itemized Deduction. Emma’s 2018 adjusted gross income is $24,

Itemized Deduction. Emma’s 2018 adjusted gross income is $24,200. She has $1,800 in unreimbursed medical expenses. How much in medical expenses could Emma claim as an itemized deduction?

Q: Itemized Deduction. Dawn’s 2018 adjusted gross income is $16,

Itemized Deduction. Dawn’s 2018 adjusted gross income is $16,700. Dawn has $1,800 in unreimbursed medical expenses. How much can Dawn claim as an itemized deduction?

Q: Taxable Income. Nick and Nora are married and file jointly.

Taxable Income. Nick and Nora are married and file jointly. They have an adjusted gross income of $47,400. If they have itemized deductions of $22,500, what is their taxable income?

Q: Change in Taxable Income. Using the information in problem 7,

Change in Taxable Income. Using the information in problem 7, if Nick and Nora’s itemized deductions increase by $4,000, how will their taxable income be affected? Data from Problem 7: Taxable Income...

Q: Present Value. Winners of the Georgia Lotto drawing are given the

Present Value. Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over twenty years or as a lump-sum cash option amount. The cash option amount i...

Q: Impact on Taxes. Daniel has a marginal tax rate of 24

Impact on Taxes. Daniel has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $1,000 tax deduction. How will this oversight affect his taxes?