Finance

9. Using the married filing jointly status and their income and expense statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First use the standard deduction, and then use the following itemized deductions: Income Earned income Interest income $57,000.00 2,400.00 Expenses Home mortgage interest Real estate and state income taxes Miscellaneous deductions $7,800.00 3,750.00 650.00 Explain to the Williams which method they should use and why. Shameka and Curtis' total gross income for the 2014 tax year is $ (Round to the nearest cent.) Assuming Shameka and Curtis are filing jointly, their exemption amount for the 2014 tax year is $ (Round to the nearest cent.) (Round to the nearest dollar.) Note: Miscellaneous deductions, unlike charitable contributions are subject to a If Shameka and Curtis use the standard deduction, their standard deduction amount for the 2014 tax year is $ deduction threshold.) Click the following link for a standard deduction table 1 Their taxable income for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis use the standard deduction, their total income tax due for the 2014 tax year is $ (Round to the nearest cent.) Click the following link for the tax rates and brackets table. 2 If Shameka and Curtis itemize their deductions, their itemized deduction amount for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis itemize their deductions, their taxable income for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis itemize their deductions, their total income tax due for the 2014 tax year is $ (Round to the nearest cent.) Click the following link for the tax rates and brackets table. 3 Which method should they use? (Select the best answer below.) O A. Standard deduction. OB.Itemized deduction 2014 1: Data Table Standard Deduction Amounts Filing Status Single Married Filing Jointly or Surviving Spouse Head of Household Married Filing Separately Personal Exemptions in 2014: $3,950 Child Tax Credit in 2014: $1,000 per child $6,200 $12,400 $9,100 $6,200 2: Data Table Tax Rates and Brackets Married Filing Joint Returns and Surviving Spouses If Taxable income is: The Tax is: Not over $18,150 10% of taxable income Over $18,150 but not over $73,800 $1,815 plus 15% of the excess over $18,150 Over $73,800 but not over $148,850 $10,162 plus 25% of the excess over $73,800 Over $148,850 but not over $226,850 $28,925 plus 28% of the excess over $148,850 Over $226,850 but not over $405, 100 $50,765 plus 33% of the excess over $226,850 Over $405,100 but not over $457,600 $109,587.50 plus 35% of the excess over $405,100 Over $457,600 $127,962.50 plus 39.6% of the excess over $457,600 3: Data Table Tax Rates and Brackets Married Filing Joint Returns and Surviving Spouses If Taxable income is: The Tax is: Not over $18,150 10% of taxable income Over $18,150 but not over $73,800 $1,815 plus 15% of the excess over $18,150 Over $73,800 but not over $148,850 $10,162 plus 25% of the excess over $73,800 Over $148,850 but not over $226,850 $28,925 plus 28% of the excess over $148,850 Over $226,850 but not over $405,100 $50,765 plus 33% of the excess over $226,850 Over $405,100 but not over $457,600 $109,587.50 plus 35% of the excess over $405,100 Over $457,600 $127,962.50 plus 39.6% of the excess over $457,600 9. Using the married filing jointly status and their income and expense statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First use the standard deduction, and then use the following itemized deductions: Income Earned income Interest income $57,000.00 2,400.00 Expenses Home mortgage interest Real estate and state income taxes Miscellaneous deductions $7,800.00 3,750.00 650.00 Explain to the Williams which method they should use and why. Shameka and Curtis' total gross income for the 2014 tax year is $ (Round to the nearest cent.) Assuming Shameka and Curtis are filing jointly, their exemption amount for the 2014 tax year is $ (Round to the nearest cent.) (Round to the nearest dollar.) Note: Miscellaneous deductions, unlike charitable contributions are subject to a If Shameka and Curtis use the standard deduction, their standard deduction amount for the 2014 tax year is $ deduction threshold.) Click the following link for a standard deduction table 1 Their taxable income for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis use the standard deduction, their total income tax due for the 2014 tax year is $ (Round to the nearest cent.) Click the following link for the tax rates and brackets table. 2 If Shameka and Curtis itemize their deductions, their itemized deduction amount for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis itemize their deductions, their taxable income for the 2014 tax year is $ (Round to the nearest cent.) If Shameka and Curtis itemize their deductions, their total income tax due for the 2014 tax year is $ (Round to the nearest cent.) Click the following link for the tax rates and brackets table. 3 Which method should they use? (Select the best answer below.) O A. Standard deduction. OB.Itemized deduction 2014 1: Data Table Standard Deduction Amounts Filing Status Single Married Filing Jointly or Surviving Spouse Head of Household Married Filing Separately Personal Exemptions in 2014: $3,950 Child Tax Credit in 2014: $1,000 per child $6,200 $12,400 $9,100 $6,200 2: Data Table Tax Rates and Brackets Married Filing Joint Returns and Surviving Spouses If Taxable income is: The Tax is: Not over $18,150 10% of taxable income Over $18,150 but not over $73,800 $1,815 plus 15% of the excess over $18,150 Over $73,800 but not over $148,850 $10,162 plus 25% of the excess over $73,800 Over $148,850 but not over $226,850 $28,925 plus 28% of the excess over $148,850 Over $226,850 but not over $405, 100 $50,765 plus 33% of the excess over $226,850 Over $405,100 but not over $457,600 $109,587.50 plus 35% of the excess over $405,100 Over $457,600 $127,962.50 plus 39.6% of the excess over $457,600 3: Data Table Tax Rates and Brackets Married Filing Joint Returns and Surviving Spouses If Taxable income is: The Tax is: Not over $18,150 10% of taxable income Over $18,150 but not over $73,800 $1,815 plus 15% of the excess over $18,150 Over $73,800 but not over $148,850 $10,162 plus 25% of the excess over $73,800 Over $148,850 but not over $226,850 $28,925 plus 28% of the excess over $148,850 Over $226,850 but not over $405,100 $50,765 plus 33% of the excess over $226,850 Over $405,100 but not over $457,600 $109,587.50 plus 35% of the excess over $405,100 Over $457,600 $127,962.50 plus 39.6% of the excess over $457,600