Using the table that is in the slides from day 5 and 6, calculate the tax liability for the following individual (show your calculations):
Ezequiel Holz is a 30 year old man that lives in Peoria, IL. He works as a Business Manager for the local Tax office. His annual salary includes his base income of $49,000 and an incentive bonus of $6,000 if the office meets all its goals. For this past year, Mr. Holz received all of the incentive bonus. You have no other information available.
1. What is the tax liability for Mr. Holz?
2. Give an example of an ADJUSTMENT he could make to his gross income
3. Assuming that his company withheld $10,000 for taxes, does he owe money to the IRS or not?