Matt and Marissa Curby have two children ages 5 & 6. Their combined gross income from their full-time positions is $135,000. Marissa also consults and earned $11,245 this past year. Matt contributed $5,500 to his 401k and Marissa contributed $3,000 to a Roth IRA. They both paid medical and dental premiums this past year totaling $450. Their daycare expenses totaled $4,350. Matt was gifted $10,000 earlier this year from his grandmother and after she passed away last month, was the beneficiary of her $30,000 life insurance policy.

Other information:

Business income--20% can be deducted

Interest earned on bank accounts totaled $123

Standard deduction of $24,800 for married couples

Tax credit per child of $1,000

Tax credit on daycare costs (max. of $3,000)

Federal income tax withheld from Matts salary is $8,498.

Federal income tax withheld from Marissas salary is $6,864.

No federal income tax was withheld from Marissas consulting.

Land taxes totaled $3,890. State taxes totaled $4,300

Charitable contributions totaled $9,000.

Interest paid on their mortgage totaled $1,500.

Create a spreadsheet and label each sheet with the appropriate letter corresponding to the question. All calculations should be done using working Excel formulas with cell references (ex. =A1+B1). Be sure to label all numbers so I can easily follow your calculations.

a. Are the Curbys able to itemize or must they use the standard deduction? Explain. (10 pts)

b. What is the Curbys taxable income if they file married filing jointly? Show all your work at arriving at taxable income for partial credit. (20 pts)

c. What is their tax liability using the tax chart below? Show all work for partial credit. (10 pts.)

d. Will the Curbys need to pay additional taxes or will they be receiving a refund? How much do they owe or how much will their refund be? Show all calculations. (20 pts.) e. What is the Curbys average tax rate? Show all calculations. (10 pts.) f. What is the Curbys marginal tax rate? (10 pts.) g. Give two suggestions that could have saved the Curbys more money in taxes? (20 pts.)

Failure to proofread work or use Excel formulas for calculations will result in up to an additional 10 point deduction

Create a spreadsheet and label each sheet with the appropriate letter corresponding to the question. All calculations should be done using working Excel formulas with cell references (ex. =A1+B1). Be sure to label all numbers so I can easily follow your calculations. a. Are the Curby's able to itemize or must they use the standard deduction? Explain. (10 pts) b. What is the Curby's taxable income if they file married filing jointly"? Show all your work at arriving at taxable income for partial credit. (20 pts) c. What is their tax liability using the tax chart below? Show all work for partial credit. (10 pts.) Tax Rate Schedules 1 Schedule Y-1-If your filing status is Married filing jointly or Qualifying widow(er) If Taxable income is Between The Tax Due is: of the But not amount Over- Over- Over- $0 19,050 ......... 10% $0 19.051 77,400 $1,905 + 12% 19,050 77.401 165,000 8,907 + 22% 77,400 165,001 315,000 28,179 + 24% 165,000 315,001 400,000 64,179 + 32% 315.000 400,001 600,000 91,379 + 35% 400,000 600.001 161,379 + 37% 600,000 Create a spreadsheet and label each sheet with the appropriate letter corresponding to the question. All calculations should be done using working Excel formulas with cell references (ex. =A1+B1). Be sure to label all numbers so I can easily follow your calculations. a. Are the Curby's able to itemize or must they use the standard deduction? Explain. (10 pts) b. What is the Curby's taxable income if they file married filing jointly"? Show all your work at arriving at taxable income for partial credit. (20 pts) c. What is their tax liability using the tax chart below? Show all work for partial credit. (10 pts.) Tax Rate Schedules 1 Schedule Y-1-If your filing status is Married filing jointly or Qualifying widow(er) If Taxable income is Between The Tax Due is: of the But not amount Over- Over- Over- $0 19,050 ......... 10% $0 19.051 77,400 $1,905 + 12% 19,050 77.401 165,000 8,907 + 22% 77,400 165,001 315,000 28,179 + 24% 165,000 315,001 400,000 64,179 + 32% 315.000 400,001 600,000 91,379 + 35% 400,000 600.001 161,379 + 37% 600,000