Question
During 2016, Julio attended school for much of the year but was supported by his parents. Julio married Jillian in December 2016.Julio graduated and began
During 2016, Julio attended school for much of the year but was supported by his parents.
Julio married Jillian in December 2016.Julio graduated and began working full-time in 2017.
Jillian worked during 2016 and earned $20,000. Julio's only income was $800 of interest.
Julio's parents are in the 28% tax bracket.Thus, claiming Julio as a dependent would save them
$1,134 (0.280 x $4,050) of taxes.
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Requirement a. Compute Julio and Jillian's gross tax if they file a joint return.
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Requirement b. Compute
Jillian's gross tax if she files a separate return in order to allow Julio's
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Requirement c. Which alternative would be better for the family? In other words, will filing a joint return save Julio and Jillian more than $1,134?
Begin by calculating Julio's taxable income and gross tax if he files a separate return, allowing his parents to claim him as a dependent. Which alternative would be better for the family? In other words, will filing a joint return save Julio and Jillian more than $1,134?
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