Personal Finance Appendix h

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Axia College Material Appendix H Tax Return Worksheet Directions: Review Gloria Ramsay’s tax return. Answer the following questions based on the information listed in her return. 1. Even though Gloria is single, her filing status is Head of Household. Why is Gloria able to file as head of household? Gloria can file as head of household because she is single and has a dependent and would file as head when she pays over 50% of maintaining the household. 2. How does Gloria benefit from filing as head of household, rather than single? She will get better tax rates with Head of Household. 3. What is Gloria’s adjusted gross income? 22,275 4. Which line in the tax form did you find her total income? Line 15 5. Even though Gloria is filing the short form (1040A), she is still able to get three credits. What are the three credits Gloria receives? List the line you found the answers on as well. Line 29 - Credit for child care - 728, line 41 - Additional child tax credit – 1,000, and Earned income credit – 1,833(line 6 in calculating your credit). 6. How much of a refund is Gloria going to receive? 4,333 7. What are the four steps listed in the filing checklist? 1. Sign and date the return. 2. Assemble the return. 3. Mail the return. 4. Keep a copy. 8. On the Wage and Tax statement, list how much Gloria paid in her Federal Tax Withholding? Fed Tax-1,500 9. How much did she pay in Social Security and Medicare? SocSec Tax-1,721, Med Tax-326 10. Share one thing you found interesting when looking through these forms. Was anything new to you? Do you have any questions about these forms? I found it all very interesting, and it is all very new to me. I have been dealing with medical issues since high school, never had a job, and barely going back to school. I have no experience of my own when it

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