Module 1 · Tax Formulas and Credits · Lesson 10 of 10

Practice cases and final check

Three client cases to work through, then a final quiz.

In this lesson · about 20 minutes

  • Apply the full formula to three different clients
  • Find the value of a deduction and the effect of a credit on a real case
  • Practice in the Noviq Tax workspace

Work each case on paper or in the calculator first, then step through the answer. All figures are federal, tax year 2025.

Worked example

Case 1: Aisha, a single teacher

Aisha teaches 4th grade. Wages $62,000, withholding $5,600. She spent $450 on classroom supplies and paid $2,000 of student loan interest. Her itemized deductions would be about $7,000.

    Step 0 of 9

    Worked example

    Case 2: The Nguyens, married with two children

    Married filing jointly. Wages $110,000 (after 401(k) contributions, which are already left out of W-2 box 1). They put $3,000 in an HSA outside payroll. Mortgage interest $14,000, property tax $6,500, state income tax $5,200, charity $3,000. Two children, ages 4 and 12. Withholding $5,000.

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      Worked example

      Case 3: Walter, a 66-year-old retiree

      Walter is single and 66. Pension $38,000, IRA withdrawal $12,000, bank interest $1,000. He has not started Social Security. Withholding from the pension was $1,200 and he made $3,000 of estimated payments.

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        Final check0 of 6 correct

        Question 1

        1.Put these in order: AGI, taxable income, gross income, gross tax liability.

        Question 2

        2.Which item reduces AGI?

        Question 3

        3.A single client has $14,000 of itemized deductions in 2025. What do they deduct?

        Question 4

        4.A $3,000 deduction for a client in the 24% bracket saves about…

        Question 5

        5.Tax is $0 and the client has a $1,000 refundable credit and $500 withheld. What is the refund?

        Question 6

        6.What does the 7.5% figure refer to?

        Quiz score: 0 of 6

        Tip: answer every quiz question correctly first.

        For learning only, not tax advice. Figures are federal for tax year 2025 and simplified; phase-outs and special rules are not all shown. Check current IRS instructions before preparing a return.