What is Samuel's total tax liability for 2014?
Samuel Ahn recently graduated from college and started working in a promising career field. He has a little money invested in a stock that pays no dividends. He lives in an apartment, is single, and has no dependents. He has a $22,000 student loan balance and he paid $800 interest in 2014. He is considering going back to school part-time for some additional computer classes. He does not have a personal IRA, and he contributed 2 percent of his $39,500 salary to his employer's 401(k) plan in 2014. As he completes his tax return for 2014, use the information above and below to help him answer the following questions.
Standard deduction for 2014: $6,200
Personal exemption for 2014: $3,950
Tax brackets for 2014:
Taxable income range Tax rate
Up to $9,075 10 percent
More than $9,075 but under $36,900 15 percent
More than $36,900 but under $89,350 25 percent
A) $5,351.25
B) $3,710.25
C) $4,541.25
D) $3,948.75
Answer: B
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