Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2019. They present you with the following information:

	Bart	Elizabeth	Joint
Salary (Bart)	$ 38,000
Salary (Elizabeth)		$ 110,000
Interest income	400	1,200	$ 2,200
Deductions for AGI	2,400	14,000
Medical expenses	10,427	3,358
State income tax	900	11,800
Real estate tax			5,800
Mortgage interest			4,200
Unreimbursed employee expenses	1,200

If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally.

If an amount is zero, enter "0". Do not round your intermediate tax computations but round your final tax answers to the nearest dollar. Round all other computations to the nearest dollar.

Complete the comparison table through AGI, then compute the total amount of the itemized deductions on the separate schedule before completing the remainder of the table.

Bart and Elizabeth Forrest

Comparison of Joint and Separate Tax Liabilities

Tax Year 2019

	Bart	Elizabeth	Joint
Salary (Bart)	$ 38,000
Salary (Elizabeth)		$ 110,000
Interest income
Gross income
Less: Deductions for AGI
AGI
Medical expenses after 10%-of-AGI floor
State income and real estate taxes
Mortgage interest
Total itemized deductions (MFS) or standard deduction (MFJ)
Total deductions from AGI
Taxable Income
Tax
Savings from filing jointly:
Tax filing separately
Tax filing jointly
Savings

Complete the letter to Bart and Elizabeth.

Dear Mr. and Mrs. Forrest:

I have reviewed the tax information you provided and have determined that you will save $__________ in Federal income tax if you file ________________ for 2019. A detailed computation that supports my conclusion is enclosed.