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1. Ashley earns a salary of $35,000, has capital gains of $4,000, and interest income of $3,000 in 2007. Her husband died in 2006. Ashley has a dependent son, Tyrone, who is age 8. Her itemized deductions are $8,000.
a.Calculate Ashley's taxable income for 2007.
Capital Gains 4,000
Interest Income 3,000
Personal Exemption (6,800) - Equals $3,400 per individual x 2.
Itemized Deduction (8,000)
2007 Taxable Income $27,200
b.What is her filing status?
Being a surviving widow, with a dependent child, Ashley's 2007 filing status is Head of Household.
2.Homer (age 68) and his wife Jean (age 70) file a ...
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Marc and Michelle's Comprehensive Tax Questions
Marc and Michelle are married and earned salaries this year (2009) of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year.
a. What is Marc and Michelle's gross income?
b. What is Marc and Michelle's adjusted gross income?
c. What is the total amount of Marc and Michelle's deductions from AGI?
d. What is Marc and Michelle's taxable income?
e. What is Marc and Michelle's taxes payable or refund due for the year? (Use the tax rate schedules.)