Problem: Sam is preparing her 2020 taxes. She lives in Norfolk, Virginia, and pays them accordingly. Below are the details you need to know to help Sam figure out what she owes in taxes.
- Sam works at an office and earns $50,000 a year.
- She has sold $10,000 worth of stocks.
- She is purchasing a car for $5,000.
- Her house is worth $150,000.
Analysis Questions
1. How much money will Sam have to pay in income taxes at a rate of 21%? How did you arrive at that conclusion?
2. Will Sam have to pay a payroll/FICA tax? Why or why not?
3. Which of Sam's income is earned?
4. Which of Sam's income is unearned?
5. How much sales tax will Sam have to pay on her car with a rate of 4.3%? Show your work.
6. Sam has to pay 0.80% in property taxes on her home each year. What is the dollar amount?