Question

Andrew and Barbara each receive a salary of $80,000. Neither Andrew nor Barbara has any other source of income. During the current year, Barbara paid $800 more in tax than Andrew. What might explain why Barbara paid more tax than Andrew when they both have the same income? Respond to each of the following statements. a. Barbara's filing status may be ______ , while Andrew's filing status may be______ . b. Barbara may not be able to exceed her_____ , while Andrew has ______. c. Andrew may be better able to reduce his tax liability through qualifying ________than Barbara.

Answer 1

a)Barbara's filing status may be Single, while Andrew's filing status may be married file jointly

Because the single individual pay more tax than married couple.

b) Barbara may not be able to exceed her deductible items, while Andrew has more deductible items.

Because married couple has deductible items than single tax payer

c)Andrew may be better able to reduce his tax liability through qualifying deductions than Barbara.

Because married couple get more qualifying deductions than single tax payer.