Explore BrainMass

Explore BrainMass

    Calculation of Tax Liabilties

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    John and Joanna have $125,000 in combined salary and wages, $8,000 in dividend income, and $3,000 in interest income. What is their tax liability for 2007 if they are married filing jointly, have $35,000 in itemized deductions, and claim no dependency exemptions?

    © BrainMass Inc. brainmass.com April 3, 2020, 6:09 pm ad1c9bdddf

    Solution Preview

    For your convenience, I have attached images of two pages from a 2007-1040 Federal Tax form, from which you can see that the tax liability for John and Joanna would amount to the sum of ...

    Solution Summary

    This posting contains a formatted MS Excel spreadsheet which illustrates how to calculate the tax liability from the impact of various financial transactions.