Johnson Family

• Married couple
• 3 kids all under (16 year old twins, 21 year old college student who lives at home)
• Wife earns $75,000/yr
• Husband earns $24,000/yr
• They own a home and paid $8,200 in mortgage interest last year
• They paid $3,600 in real estate taxes
• Family donated $1,500 to the church last year
• Family Contributed $400 to Goodwill
• Husband paid $2,700 in student loan interest last year
• Family paid a combined $9,000 in federal income tax through their paychecks
• Own 3 cars that are all paid off
• Husband Contributed $6,000 to a traditional IRA last year
• Wife Contributed $500 to a Traditional IRA

1. What is the Johnson Family AGI?

2. What would the standard deduction be for the Johnson family?

3. What is the total of itemized deductions the Johnson family can use?

4. What is the total for exemptions available for the Johnson family?

5. What is the Johnson family Taxable Income?

6. What is the Johnson family marginal tax rate?

7. How much will the Johnsons owe/get in refund for their tax return?

8. What is the average tax rate for the Johnson family?