1. Harry and Belinda Johnsons are a married couple with no kids. The Johnsons' total income last year included Harry's salary of $58,000 and Belinda's salary of $82,000. They contributed $5,000 to their retirement fund ( 401k). Belinda earned $500 in interest on savings and checking accounts and $4,000 interest income from the trust that is taxed in the same way as interest income from checking and savings. Assume each exemption reduces taxable income by $4,050, and the standard deduction amounts are $6,300 for single individuals and $12,600 for married people filing jointly. Answer questions a, b, c, d, e, and f. a. What is the Johnsons' reportable gross income on their joint tax return? (4 pts) a. What is their adjusted gross income? (4 pts) a. What is the total value of their exemptions? (2 pts) a. The Johnsons are also paying $14,800 for interest and real estate property taxes for their home mortgage. The couple has $14,000 in other itemized deductions. What is their taxable income? (8 pts) a. Using Table 4-2 in your textbook, calculate the Johnsons' tax liability? (4 pts) a. List three additional ways that the Johnsons might reduce their tax liability next year. (6 pts) 1. 1) Explain the circumstances when it would be appropriate to have funds in a checking account, a savings account, and in investments. (5 pts) 2) Explain how to protect yourself from overdrafts. Which option would you choose and why? (5 pts) 1. 1) If there is such a thing as good debt, what types of debt do you consider to be "good"? What types do you consider to be "bad"? (5 pts) 2) Molly is a new college graduate. What would you suggest her to do to start building good credit? (5 pts) 1. Harry and Belinda Johnsons are a married couple with no kids. The Johnsons' total income last year included Harry's salary of $58,000 and Belinda's salary of $82,000. They contributed $5,000 to their retirement fund ( 401k). Belinda earned $500 in interest on savings and checking accounts and $4,000 interest income from the trust that is taxed in the same way as interest income from checking and savings. Assume each exemption reduces taxable income by $4,050, and the standard deduction amounts are $6,300 for single individuals and $12,600 for married people filing jointly. Answer questions a, b, c, d, e, and f. a. What is the Johnsons' reportable gross income on their joint tax return? (4 pts) a. What is their adjusted gross income? (4 pts) a. What is the total value of their exemptions? (2 pts) a. The Johnsons are also paying $14,800 for interest and real estate property taxes for their home mortgage. The couple has $14,000 in other itemized deductions. What is their taxable income? (8 pts) a. Using Table 4-2 in your textbook, calculate the Johnsons' tax liability? (4 pts) a. List three additional ways that the Johnsons might reduce their tax liability next year. (6 pts) 1. 1) Explain the circumstances when it would be appropriate to have funds in a checking account, a savings account, and in investments. (5 pts) 2) Explain how to protect yourself from overdrafts. Which option would you choose and why? (5 pts) 1. 1) If there is such a thing as good debt, what types of debt do you consider to be "good"? What types do you consider to be "bad"? (5 pts) 2) Molly is a new college graduate. What would you suggest her to do to start building good credit? (5 pts)
