Question

HW SCOre: 9376, .3 Of TU pts Problem P4-7 (similar to) EQuestion Help Using the married fling jointly status and their income and expense statement, calculate the 2017 tax Iiability for Shameka and Curtis Williams. First, use the standard deduction, and then use the following itemized deductions Income Еxpenses Earned income $50,000 00 Home mortgage interest Real estate and state income taxes Miscellaneous deductions $7,800.00 Intorest income 2,100 00 3,900 00 450.00 Explain to the Williams which method they should use and why Shameka and Curtis' total gross income for the 2017 tax year is $ 52100 (Round to the nearest cent) Assuming Shameka and Curtis are filing jointly, their exemption amount for the 2017 tax year is $ 8100 (Round to the nearest cent) If Shameka and Curtis use the standard deduction, their standard deduction amount for the 2017 tax year is $ 12700 (Round to the nearest dollar) Note. Miscellaneous deductions, unlike charitable contributions are subject to a deduction threshold) Click the following link for a standard deduction table. Their taxable income for the 2017 tax year is $ 31300 (Round to the nearest cent) If Shameka and Curtis use the standard deduction, their total income tax due for the 2017 tax year is $ (Round to the nearest cent) Click the following link for the tax rates and brackets table.

Answer 1

Ans: Calculate total gross Income Particulars Amount Earned Income $50,000 Interest Income Gross Income $52.100 Add: $2,100 Calculate exemption Particulars Amount Earned Income $8,100 (4050*2) 3) Standard deduction $12.700 Given) 4) Calculate taxable Income Particulars Amount Gross Income $52.100 Less: Exemption 8100 Less: Standard deduction $12.700 Taxable Income $31,300 | Particulars Amount Taxliability $3.762.50 1865+(15%*(31300-18650)) Taxable income $31,300 come under the 15% tax brackert. For your ref Table 2. Married Filing Joint Taxable Income Tax Brackets and Rates, 2017 Rate Taxable income Bracket Tax Owed 10% $0 to $18,650 10% of taxable income 15% $18,650 to $75,900 $1,865 plus 15% of the excess over $18,650