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n0thingbutblu3
n0thingbutblu3 asked in Business & FinanceTaxesUnited States · 1 decade ago

compute after tax cost?

Hello. Could somebody help me out with these two problems that I'm stuck on?

a. Ms. C received no reimbursement. Her AGI is $16,450, she does not itemizes deductions, and her marginal tax rate is 10%.

b. Ms. C received no reimbursement. Her AGI is $25,300, she itemizes deductions, and her marginal tax rate is 15%.

Thanks for your help!

Update:

Sorry! Yes I did forget to add these details:

Ms. C paid $500 of union dues and $619 for small tools used on the job. In each of the following cases, compute her after-tax cost of these employment-related expenses.

2 Answers

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  • Bob F
    Lv 7
    1 decade ago
    Favorite Answer

    Well, the person that doesn't itemize deductions won't get any tax break, so their cost will be the full $1,119.

    The person who itemizes will have to meet the 2% of AGI threshhold, so the first $1060 is not deductible, but the last $59 is. The itemizer will net $8.85 from their tax return.

    Source(s): http://www.zen-40.com/
  • Judy
    Lv 7
    1 decade ago

    I think you left out part of the problem. After tax cost of WHAT?

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