Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they havelegitimate itemized deductions totaling $27,750. Their total income from wages is $210,500. Assume the following tax tableis applicable:Married Couples Filing Joint ReturnsYou Pay This AmountIf Your Taxableon the Base of thePlus This Percentage on Average Tax Rate at TopIncome IsBracketthe Excess over the Baseof BracketUp to $19,750$0.0010.0%10.0%$19,750-$80,250$80,250-$171,0501,975.0012.011.59,235.0022.017.1$171,050-$326,60029,211.0024.020.4$326,600-$414,70066,543.0032.022.8$414,700-$622,05094,735.0035.026.9167,307.50Over $622,050What is their marginal tax rate?37.037.0O a. 12.0%O b. 35.0%O c. 22.0%O d. 24.0%e. 32.0%

Marginal tax rates means that we have to paid additional tax form every additional dollar earned…

Answered: Alan and Sara Winthrop are a married…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,000 in investment expenses. They also incur $3,000 of investment interest expense during the year. The Porters' income for the year consists of $150,000 in salary and $2,500 of interest income. a. What is the amount of the Porters' investment interest expense deduction for the year? Investment interest expense deduction
a. Bristol, who is single, has AMTI of $737,200. Her AMT exemption is $ b. Marley and Naila are married and file a joint tax return. Their AMTI is $ 1,226,400. Their AMT exemption is $
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Economics John Doe has a $50,000 adjusted gross income and allowable itemized deductions of $7,500. Jane Doe has a $55,000 adjusted gross income and $4,000 of allowable itemized deductions. a) Compute the total tax they would pay if they file separate returns. b) Compute their tax as a married couple filing a joint return.
Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $73,850. Assume the following tax table is applicable. Single Individuals If Your Taxable Income is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 You Pay This Amount on the Base of the Bracket O a $9,309.00 Ob $12,037.00 O c $4,617.50 Od $7.176.50 e $13.519.00 $0.00 987.50 4,617.50 14,605.50 33,271.50 47,367.50 156,235.00 $207 350-$518,400 Over $518,400 What is her federal tax liability? Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20,4 22.8 30,1 37.0
@
Determine the amount of the child tax credit in each of the following cases: a. A single parent with modified AGI of $215,300 and one child age 4. b. A single parent with modified AGI of $79,900 and three children ages 7, 9, and 12. c. A married couple, filing jointly, with modified AGI of $409,833 and two children age 14 and 16. d. A married couple, filing jointly, with modified AGI of $133,955 and one child, age 13. Child Tax Credit Allowed
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Owe

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