Kendra Thayer, who is single, goes to graduate school part time and works as a waitress at the Backwater Grill in New York During the past year (2014), her gross income was $18,400 in wages and tips She has decided to prepare her own tax return because she cannot afford the services of a tax expert After preparing her return, she comes to you for advice Here's a summary of the figures she has prepared thus far Gross income Wages $10,000 Tips 8,400 Adjusted gross income (AGI) $18,400 Less Itemized deductions 2,100$16,300 Less Standard deduction 6,200 Taxable income $10,100Kendra believes that if an individual's income falls below $20,350, the federal government considers him or her poor and allows both itemized deductions and a standard deduction 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 Discuss Kendra's errors in interpreting the tax laws, and explain the difference between itemized deductions and the standard deduction Kendra has been dating Joe Keating for nearly four years, and they are seriously thinking about getting married John 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) Round the answer to 1 decimal place (Use Exhibit 3 3 ) 4 Strictly from a tax perspective, does it make any difference whether Kendra and Joe stay single or get married Explain Select Y N al income vary with the amount of reported taxable income and the taxp 2014 Tax Rate Schedules Schedule X If your filing status is Single If your taxable The tax is income is of the Over But not amount DVC over SO $9,075 10 SO 9,075 36,900 $907 50 15 9,075 36,900 89,350 5,081 25 25 36,900 89,350 186,350 18,193 75 28 89,350 186,350 405,100 45,353 75 33 186,350 405,100 406,750 117,541 25 35 405,100 406,750 118,118 75 39 6 406,750 Schedule Y 1 If your filing status is Married filing jointly or Qualifying widow(er If your taxable The tax is income is of the Over But not amount DVC over $18,150 10 SO 18,150 73,800 $1,815 00 15 18,150 73,800 148,850 10,162 50 25 73,800 148,850 226,850 28,925 00 28 148,850 226,850 405,100 50,765 00 33 226,850 405,100 457,600 109,587 50 35 405,100 457,600 127,962 50 39 6 457,600 Schedule Y 2 If your filing status is Married filing separately If your taxable The tax is income is of the Over But not amount over over $0 $9,075 mmm 10 9,075 36,900 $907 50 15 9,075 36,900 74,425 5,081 25 25 36,900 74,425 113,425 14,462 50 28 74,425 113,425 202,560 25,382 50 33 113,425 202,550 228,800 54,793 75 35 202,550 228,800 63,981 25 39 6 228,800 Schedule Z If your filing status is Head of household If your taxable The tax is income is But not of the Over amount DVC over $0 $12,960 mmm 10 SO 12,950 49,400 $1,295 00 15 12,950 49,400 127 550 6,762 50 25 49,400 127,550 206,600 26,300 00 28 127,550 206,600 405,100 48,434 00 33 206,600 405,100 432,200 113,939 00 35 405,100 432,200 123,424 00 39 6 432,200

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Kendra Thayer, who is single, goes to graduate school part-time and works as a waitress at the Backwater Grill in New York. During the past

Kendra Thayer, who is single, goes to graduate school part-time and works as a waitress at the Backwater Grill in New York. During the past year (2014), her gross income was $18,400 in wages and tips. She has decided to prepare her own tax return because she cannot afford the services of a tax expert. After preparing her return, she comes to you for advice. Here's a summary of the figures she has prepared thus far:

Gross income:Wages$10,000Tips+8,400Adjusted gross income (AGI)$18,400Less: Itemized deductions-2,100$16,300Less: Standard deduction-6,200Taxable income$10,100Kendra believes that if an individual's income falls below $20,350, the federal government considers him or her "poor" and allows both itemized deductions and a standard deduction.

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.
Discuss Kendra's errors in interpreting the tax laws, and explain the difference between itemized deductions and the standard deduction.
Kendra has been dating Joe Keating for nearly four years, and they are seriously thinking about getting married. John 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)? Round the answer to 1 decimal place. (UseExhibit 3.3.)

4.Strictly from a tax perspective, does it make any difference whether Kendra and Joe stay single or get married? Explain.-Select- Y/N?

al income vary with the amount of reported taxable income and the taxp 2014 Tax Rate Schedules Schedule X-If your filing status is Single If your taxable The tax is: income is: of the Over- But not amount DVC- over- SO $9,075 - . .. ... 10% SO 9,075 36,900 $907.50 + 15 9,075 36,900 89,350 5,081.25 + 25 36,900 89,350 186,350 18,193.75 + 28 89,350 186,350 405,100 45,353.75 + 33 186,350 405,100 406,750 117,541.25 + 35 405,100 406,750 118,118.75 + 39.6 406,750 Schedule Y-1-If your filing status is Married filing jointly or Qualifying widow(er] If your taxable The tax is: income is: of the Over- But not amount DVC- over $18,150 - . . .... 10% SO 18,150 73,800 $1,815.00 + 15 18,150 73,800 148,850 10,162.50 + 25 73,800 148,850 226,850 28,925.00 + 28 148,850 226,850 405,100 50,765.00 + 33 226,850 405,100 457,600 109,587.50 + 35 405,100 457,600 ...... 127,962.50 + 39.6 457,600 Schedule Y-2-If your filing status is Married filing separately If your taxable The tax is: income is: of the Over- But not amount over- over- $0 $9,075 = =.mmm. 10% 9,075 36,900 $907.50 + 15 9,075 36,900 74,425 5,081.25 + 25 36,900 74,425 113,425 14,462.50 + 28 74,425 113,425 202,560 25,382.50 + 33 113,425 202,550 228,800 54,793.75 + 35 202,550 228,800 ...... 63,981.25 + 39.6 228,800 Schedule Z-If your filing status is Head of household If your taxable The tax is: income is: But not of the Over- amount DVC- over- $0 $12,960 . .mmm. 10% SO 12,950 49,400 $1,295.00 + 15 12,950 49,400 127.550 6,762.50 + 25 49,400 127,550 206,600 26,300.00 + 28 127,550 206,600 405,100 48,434.00 + 33 206,600 405,100 432,200 113,939.00 + 35 405,100 432,200 123,424.00 + 39.6 432,200