Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $55,000 from Kates book royalties; $83,000 from Richards salary; $10,000 in life insurance proceeds from a deceased aunt; $170 in interest from savings; $4,360 in alimony from Kates ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richards parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year.

A New Family Calculates Income and Tax Liability Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $55,000 from Kate's book royalties; $83,000 from Richard salary; $10,000 in life insurance proceeds from a deceased aunt; $170 in interest from savings; $4,360 in alimony from Kate's ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard's parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year. a. What is the total of their reportable gross income? Round your answer to the nearest dollar. $ b. After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income? Round your answer to the nearest dollar. c. How many exemptions can the family claim? Round your answer to the nearest whole number. Number of exemptions: How much is the total value of exemptions allowed for the household? Round your answer to the nearest dollar. $ 16200 d. How much is the allowable standard deduction for the household? Round your answer to the nearest dollar. e. Their itemized deductions are $13,100, so should they itemize or take the standard deduction? They should take -Select- f. What is their taxable income for a joint return? Round your answer to the nearest dollar. g. What is their final federal income tax liability, and what is their marginal tax rate? (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent and answer for marginal tax rate to the nearest whole number. f. What is their taxable income for a joint return? Round your answer to the nearest dollar. g. What is their final federal income tax liability, and what is their marginal tax rate? (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent and answer for marginal tax rate to the nearest whole number. Tax Liability Marginal tax rate % h. If Richard's employer withheld $21,000 for income taxes, does the couple owe money to the government or do they get a refund? How much? Round your answer to the nearest cent. -Select- A $ Tax Rate Schedules DO IT IN CLASS But not over- $ 9,275 $ 37,650 $ 91,150 $190,150 $413,350 $415,050 No limit The tax is- 10% of the taxable income $927.50 plus 15% of the amount over $9,275 $5,183.75 plus 25% of the amount over $37,650 $18,558.75 plus 28% of the amount over $91,150 $46,278.75 plus 33% of the amount over $190,150 $119,934.75 plus 35% of the amount over $413,350 $120,529.75 plus 39.6% of the amount over $415,050 Single Individuals If taxable income is over- $ 0 $ 9,276 $ 37,651 $ 91,151 $190,151 $413,351 Over $415,050 Married couples Filing Jointly If taxable income is over- $ 0 $ 18,551 $ 75,301 $ 151,901 $231,451 $413,351 Over $466,950 But not over- $ 18,550 $ 75,300 $151,900 $231,450 $413,350 $466,950 No limit The tax is- 10% of the taxable income $1855 plus 15% of the amount over $18,550 $10,367.50 plus 25% of the amount over $75,300 $29,517.50 plus 28% of the amount over $151,900 $51,791.50 plus 33% of the amount over $231,450 $111,818,50 plus 35% of the amount over $413,350 $130,578.50 plus 39.6% of the amount over $466,950 A New Family Calculates Income and Tax Liability Kate Beckett and her two children, Austin and Alexandra, moved into the home of her new husband, Richard Castle, in New York City. Kate is a novelist, and her husband is a police detective. The family income consists of the following: $55,000 from Kate's book royalties; $83,000 from Richard salary; $10,000 in life insurance proceeds from a deceased aunt; $170 in interest from savings; $4,360 in alimony from Kate's ex-husband; $14,200 in child support from her ex-husband; $500 cash as a Christmas gift from Richard's parents; and a $1,600 tuition-and-books scholarship Kate received to go to college part time last year. a. What is the total of their reportable gross income? Round your answer to the nearest dollar. $ b. After Richard put $5,600 into qualified retirement plan accounts last year, what is their adjusted gross income? Round your answer to the nearest dollar. c. How many exemptions can the family claim? Round your answer to the nearest whole number. Number of exemptions: How much is the total value of exemptions allowed for the household? Round your answer to the nearest dollar. $ 16200 d. How much is the allowable standard deduction for the household? Round your answer to the nearest dollar. e. Their itemized deductions are $13,100, so should they itemize or take the standard deduction? They should take -Select- f. What is their taxable income for a joint return? Round your answer to the nearest dollar. g. What is their final federal income tax liability, and what is their marginal tax rate? (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent and answer for marginal tax rate to the nearest whole number. f. What is their taxable income for a joint return? Round your answer to the nearest dollar. g. What is their final federal income tax liability, and what is their marginal tax rate? (Hint: Use Table 4-2.) Round your answer for tax liability to the nearest cent and answer for marginal tax rate to the nearest whole number. Tax Liability Marginal tax rate % h. If Richard's employer withheld $21,000 for income taxes, does the couple owe money to the government or do they get a refund? How much? Round your answer to the nearest cent. -Select- A $ Tax Rate Schedules DO IT IN CLASS But not over- $ 9,275 $ 37,650 $ 91,150 $190,150 $413,350 $415,050 No limit The tax is- 10% of the taxable income $927.50 plus 15% of the amount over $9,275 $5,183.75 plus 25% of the amount over $37,650 $18,558.75 plus 28% of the amount over $91,150 $46,278.75 plus 33% of the amount over $190,150 $119,934.75 plus 35% of the amount over $413,350 $120,529.75 plus 39.6% of the amount over $415,050 Single Individuals If taxable income is over- $ 0 $ 9,276 $ 37,651 $ 91,151 $190,151 $413,351 Over $415,050 Married couples Filing Jointly If taxable income is over- $ 0 $ 18,551 $ 75,301 $ 151,901 $231,451 $413,351 Over $466,950 But not over- $ 18,550 $ 75,300 $151,900 $231,450 $413,350 $466,950 No limit The tax is- 10% of the taxable income $1855 plus 15% of the amount over $18,550 $10,367.50 plus 25% of the amount over $75,300 $29,517.50 plus 28% of the amount over $151,900 $51,791.50 plus 33% of the amount over $231,450 $111,818,50 plus 35% of the amount over $413,350 $130,578.50 plus 39.6% of the amount over $466,950