In: Accounting
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.
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 | ||||