Show all components of your work for partial credit review.

Mike (age 40) and Carol (age 39) Brady are married. Carol works as a retail manager and Mike is a self-employed architect but does not maintain a home office. Their2016tax and other information are as follows:

Salary ? Carol	80,000
Federal withholding on salary	20,000
State withholding on salary	5,000
Interest income on municipal bonds:
State of Connecticut	2,000
Savings account interest	1,000
Dividends from RGR, Inc. (all are non-qualified)	4,000
Value of employer provided medical insurance	3,000
Inheritance from Carol?s father?s estate	7,000
Interest paid on personal car loan	1,500
Interest paid on personal loan	1,000
Child support paid to Mike?s ex-wife	10,000
Alimony paid to Mike?s ex-wife	6,000
Qualified Out of Pocket Medical Expenses	3,000
Donations to church Real Estate taxes on primary residence	2,500 6,000
Mortgage interest on primary residence (	4,000
Mike?s business revenues	50,000
Mike?s business expenses	15,000

Required: Using the tax formula format, determine the following for the Brady?s2016 tax year(show all calculations):

All Income $___________

Exclusions (if any) $ ___________

Gross income (including Mike?s SE income) $ ___________

Deductions For AGI $ ___________

Adjusted gross income $ ___________

Itemized deduction or standard deduction amount $ ___________

Deduction for exemptions $ ___________

Taxable income $ ___________

Income tax liability $ ___________

Self-employment tax liability $ ___________

Net tax due or refund (show calculation) $ ___________

Remember:This is for the 2016 tax year. You must use appropriate 2016 amounts for standard deduction, exemptions, and tax calculations.

PLEASE SHOW CALCULATIONS. Thanks!!

Federal Income Taxes Midterm Exam Show all components of your work for partial credit review. Mike (age 40) and Carol (age 39) Brady are married. Carol works as a retail manager and Mike is a self-employed architect but does not maintain a home office. Their 2016 tax and other information are as follows: Salary - Carol Federal withholding on salary State withholding on salary Interest income on municipal bonds: State of Connecticut Savings account interest Dividends from RGR, Inc. (all are non-qualified) Value of employer provided medical insurance Inheritance from Carol's father's estate Interest paid on personal car loan Interest paid on personal loan Child support paid to Mike's ex-wife Alimony paid to Mike's ex-wife Qualified Out of Pocket Medical Expenses Donations to church Real Estate taxes on primary residence Mortgage interest on primary residence (