Critical Thinking Questions

1

Calculate Kendra Thayer's taxable income, being sure to consider her exemption. Assume that

the standard deduction for a single taxpayer is $6.200, and that each exemption claimed is worth

$3,950.

2.

Discuss Kendra's errors in interpreting the tax laws, and explain the difference between itemized

deductions and the standard deduction.

3. Kendra has been dating Joe Keating for nearly four years, and they are seriously thinking about get-

ting married. Joe has income and itemized deductions that are identical to Kendra's. How much tax

would they pay as a married couple (using the filing status of married filing jointly and a standard

deduction of $12.400) versus the total amount the two would pay as single persons (each using the

filing status of single)? Strictly from a tax perspective, does it make any difference whether Kendra

and Joe stay single or get married? Explain.

hed WE N LG1, 2, 3, P.BG, 90, 96 3.2 Kendra Thayer: Waitress or Tax Expert? Kendra Thayer, who is single, goes to graduate school part-time and works as a waitress in the Backwater Grit in New York. During the past year 20141, er gross income was $18.700 inweges and tips She has decided to prepare her own tax return because she cannot afford the services of a tax expert After preparing her retum, she comes to you for adson. Here's a summary of the figures that she has prepared thus far Grass income Wager Tips Aduated gross income AGR Lesa merged deductions $10.500 +1.200 $18.700 -2.300 $16.400 -0.200 $10.600 Less Standard deduction Taxable income Kendra believes that if an individual's income falls below $20.350, the federal government consid ers him or her "poor" and allows both itemized deductions and a standard deduction Critical Thinking Questions 1 Calculate Kendra Thayer's taxable income, being sure to consider her exemption. Assume that the standard deduction for a single taxpayer is $0,200, and that each exemption claimed is worth $3.960 2. Discuss Kendra's errors in interpreting the tax laws, and explain the difference between itemized deductions and the standard deduction 3 Kendra has been dating Joe Keating for nearly four years, and they are seriously thinking about get- ting married Joe has income and itemized deductions that are identical to Kendra's. How much tax would they pay as a married couple lusing the filing status of mamed fling jointly and a standard. deduction of $12.400) versus the total amount the two would pay as single persons teach using the fling status of singlel? Strictly from a tax perspective, does e make any difference whether Kendra and Joe stay single or get mamed? Explain CHI 22