Family G: $45,000 in Adjusted Gross Income
Family G consists of a husband and wife with three children, ages 2, 3, and 6. The federal adjusted gross income is $45,000, all from salary. Family G contributes $2,000 to the 529 savings plan for college, purchases school supplies and clothing during the tax-free weekend (amount spent = $500), and the five family members attend 2 Hornets games (ticket price = $82 each), 1 concert (ticket price = $60 each), 4 movies (ticket price = $6 each), and one circus performance (ticket price = $30 each). The family files a joint return and uses the standard deduction. Charitable contributions amount to $1,400.
| 2013 | 2015 | |
|---|---|---|
| Federal adjusted gross Income | 45,000 | 45,000 |
| Deduction for Contribution to saving fund for college (529 plan) | 2,000 | 0 |
| Deduction for small business income | 0 | 0 |
| North Carolina adjusted gross income | 43,000 | 45,000 |
| Standard deduction | 6,000 | 15,000 |
| N.C. personal exemption allowances | 12,500 | 0 |
| N. C. taxable income | 24,500 | 30,000 |
| N.C. income tax | 1.504 | 1,725 |
| Consumer use tax | 17 | 20 |
| Income Tax due | 1,521 | 1,775 |
| Credit for children (100 per child) | 300 | 300 |
| Credit for child and dependent care expenses (6000 x .10) | 600 | 0 |
| N.C. earned income tax credit | 62.01 | 0 |
| Credit for charitable contributions for non-itemizers | 35 | 0 |
| Net income tax due | 524 | 1,445 |
| Sales taxes | ||
| – School supplies, clothing during tax free weekend | 0 | 33.75 |
| – Tickets for 2 Hornets games | 0 | 55.35 |
| – Tickets for 1 concert | 0 | 20.25 |
| – Tickets for 4 movies | 0 | 8.10 |
| – Tickets for 1 circus performance | 0 | 10.125 |
| Total Taxes | 524 | 1,588 |
Thus, Family G will see a large increase in its total taxes; taxes more than tripled.
Voting 2016 