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 2018. They present you with the following information: Bart Elizabeth Joint Salary Business net income Interest income Deductions for AGI Medical expenses State income tax Real estate ta>x Mortgage interest Unreimbursed employee expenses $38,000 400 2,400 10,427 900 $110,000 1,200 14,000 3,358 1,800 $2,200 3,800 4,200 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 "O". Do not round your intermediate computations and round your final answers 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 Click here to access the 2018 tax rate schedule Bart and Elizabeth Forrest Comparison of Joint and Separate Tax Liabilities Tax Year 2018 Bart Elizabeth Joint Salary 38,000 V 38,000 V 110,000 3,800 151,800 -16,400 135,400 Business net income 110,000 1,500 | 39,500 2,400 37,100 10,427 X Interest income 2,300v 112,300 -14,000 98,300 Gross income Less: deductions for AGI AGI Medical expenses after 7.5%-of-AGI floor 0 10,155 X 1,800 1,900 | 2,100 5,800 9,800 X State income tax 800 X 2,600X Real estate tax 1,900 3,800 2,100 4,200 Mortgage interest Total itemized deductions (MFS) or standard deduction (MFJ) Total deductions from AGI 13,007 X 12,600 X -15,975 X -20,600 X -15,975x -9,800|X $| -20,600|X 114,800 x 20,288 X Total deductions from AGI Taxable income 21,125X 88,500X 18,306 X 2 Tax Savings from filing jointly: Tax filing separately Tax filing jointly 21,014 X -20,288X 726X Savings 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 2018. They present you with the following information: Bart Elizabeth Joint Salary Business net income Interest income Deductions for AGI Medical expenses State income tax Real estate ta>x Mortgage interest Unreimbursed employee expenses $38,000 400 2,400 10,427 900 $110,000 1,200 14,000 3,358 1,800 $2,200 3,800 4,200 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 "O". Do not round your intermediate computations and round your final answers 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 Click here to access the 2018 tax rate schedule Bart and Elizabeth Forrest Comparison of Joint and Separate Tax Liabilities Tax Year 2018 Bart Elizabeth Joint Salary 38,000 V 38,000 V 110,000 3,800 151,800 -16,400 135,400 Business net income 110,000 1,500 | 39,500 2,400 37,100 10,427 X Interest income 2,300v 112,300 -14,000 98,300 Gross income Less: deductions for AGI AGI Medical expenses after 7.5%-of-AGI floor 0 10,155 X 1,800 1,900 | 2,100 5,800 9,800 X State income tax 800 X 2,600X Real estate tax 1,900 3,800 2,100 4,200 Mortgage interest Total itemized deductions (MFS) or standard deduction (MFJ) Total deductions from AGI 13,007 X 12,600 X -15,975 X -20,600 X -15,975x -9,800|X $| -20,600|X 114,800 x 20,288 X Total deductions from AGI Taxable income 21,125X 88,500X 18,306 X 2 Tax Savings from filing jointly: Tax filing separately Tax filing jointly 21,014 X -20,288X 726X Savings
