Family H: $30,000 in Adjusted Gross Income
Family H consists of a single parent with three children, ages 9, 10, and 16. The federal adjusted gross income is $30,000, all from salary. Family H purchases school supplies and clothing during the tax-free weekend (amount spent = $500), purchases a service agreement (cost = $300) for a new television set, and the four family members attend 2 concerts (ticket price = $60 each), 4 movies (ticket price = $6 each), and one circus performance (ticket price = $30 each). The family files a head of household return and uses the standard deduction. Charitable contributions amount to $1,000.
| 2013 | 2015 | |
|---|---|---|
| Federal adjusted gross Income | 30,000 | 30,000 |
| Deduction for Contribution to saving fund for college (529 plan) | 0 | 0 |
| Deduction for small business income | 0 | 0 |
| North Carolina adjusted gross income | 30,000 | 30,000 |
| Standard deduction | 4,400 | 12,000 |
| N.C. personal exemption allowances | 10,000 | 0 |
| N. C. taxable income | 15,600 | 18,000 |
| N.C. income tax | 938 | 1,035 |
| Consumer use tax | 11 | 12 |
| Income Tax due | 949 | 1,047 |
| Credit for children ($100 per child in 2013 and $125 per child in 2014 at this income level) | 300 | 375 |
| Credit for child and dependent care expenses | 0 | 0 |
| N.C. earned income tax credit | 153.34 | 0 |
| Credit for charitable contributions for non-itemizers | 28 | 0 |
| Net income tax due | 467 | 672 |
| Sales taxes | ||
| – School supplies, clothing during tax free weekend | 0 | 34.50 |
| – Service agreement for television set | 0 | 20.70 |
| – Tickets for 2 concerts | 0 | 32.40 |
| – Tickets for 4 movies | 0 | 6.48 |
| – Tickets for 1 circus performance | 0 | 8.10 |
| Total Taxes | 467 | 774.18 |
Thus, Family H will see an increase in its total taxes.
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