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Gross Earnings and Tax Returns

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Both Mr. Jones and Mrs. Green earned $50,000 gross in 2009. Yet, Mr. Jones owed IRS $600 on his tax return while the IRS owed Mrs. Green $600 on her tax return. What do you think were the possible reasons for the difference in the results? Explain.

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Solution Summary

Gross earnings and tax returns are examined for both Mr. Jones and Mrs. Green.

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Well, there are a couple of things.

The filing status for each individual. Depending on how they are classified (head-of-household, single, married filing jointly, married filing single etc...) the tax bracket where they fall is very likely to impact how much they end up paying in taxes.

Also, whether or not they have ...

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