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6. Marti and Nicare married, filing jointly. They have two children. Together, their adjusted gross income is $53,250. They have $12,000 of mortgage interest and

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6. Marti and Nicare married, filing jointly. They have two children. Together, their adjusted gross income is $53,250. They have $12,000 of mortgage interest and charitable contributions totaling $1250. Answer the following questions using the table found on the NEXT PAGE. a. Should they itemize their deductions or take the standard deduction? How much will their deduction be? b. Find their taxable income. c. Calculate the total (marginal) tax owed. d. If $350 has been withheld from their paycheck each month, will Marti and Nicowe money to the IRS or receive a refund check? If they receive a refund, how much will he receive? If they owe money, how much will they owe? TABLE 4.9 2017 Marginal Tax Rates, Standard Deductions, and Exemptions * Married Filing Married Filing Head of Tax Rate Single Jointly Separately Household 10% up to $9325 up to $18,650 up to $9325 up to $13,350 15% up to $37,950 up to $75,900 up to $37,950 up to $50,800 25% up to $91,900 up to $153,100 up to $76,550 up to $131,200 28% up to $191,650 up to $233,350 up to 5116,675 up to $212,500 33% up to 5416,700 up to $416,700 up to 5208,350 up to $416,700 35% up to $418,400 up to $470,700 up to $235,350 up to $444,550 39.6% above 5418,400 above $470,700 above $235,350 above $444,550 Standard $6350 $12,700 $6350 59350 deduction Exemption $4050 $4050 $4050 $4050 (per person) * This table ignores (1) exemption and deduction phase-outs that apply to high-income taxpayers, 01) the alterna- tive minimum tax (AMT) that affects many middle and high income taxpayers; (ll) potential changes in tax law made after this text was printed that may have changed the values given in this table for 2017. **Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% marginal rate affects income starting at 59325, which is where the 10% rate leaves off, and continuing up to $37,950

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