Brad and Angie had the following income and deductions during 2017: SALARIES $110,000 INTEREST INCOME 10,000...

Brad and Angie had the following income and deductions during 2017: SALARIES $110,000 INTEREST INCOME 10,000 ITEMIZED DEDUCTIONS 16,000 TAXES WITHHELD DURING YEAR 15,000 CALCULATE BRAND AND ANGI'S TAX LIABILITY DUE OR REFUND, ASSUMING THAT THEY HAVE 2 PERSONAL EXEMPTIONS. THEY FILE A JOINT RETURN.

Expert Solution

Income
Salaries		$ 110,000
Interest income		10,000
Total Income		$ 120,000
Minus: Exclusions		-
Gross Income		$ 120,000
Minus: Deductions for AGI		-
Adjusted Gross Income (AGI)		120,000
Minus: Deductions from AGI:
Itemized deductions	-16000
Personal exemption	-8100	(24,100)
Taxable income		95,900
Tax		15,452.50	10452.50+25% x (95900-75900)
Minus: Taxes withheld		(15,000)
Liability		452.50

2017 rates used in calculation
Married Filing Jointly or Qualifying Widow(er)
Taxable Income	Tax Rate
$0 – $18,650	10%
$18,651 – $75,900	$1,865 plus 15% of the amount over $18,650
$75,901 – $153,100	$10,452.50 plus 25% of the amount over $75,900
$153,101 – $233,350	$29,752.50 plus 28% of the amount over $153,100
$233,351 – $416,700	$52,222.50 plus 33% of the amount over $233,350
$416,701 – $470,700	$112,728 plus 35% of the amount over $416,700
$470,701 or more	$131,628 plus 39.6% of the amount over $470,700

ekkarill92 answered 2 years ago

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