Answered step by step
Verified Expert Solution
Question
1 Approved Answer
thanks for your effort Cheryl Stern, who is single, goes to graduate school part-time and works as a waitress at the Sunset Grill in Seattle.
thanks for your effort
Cheryl Stern, who is single, goes to graduate school part-time and works as a waitress at the Sunset Grill in Seattle. During the past year (2011), her gross income was $18,100 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: $10,000 +8,100 $18,100 2,500 $15,600 -5,800 $9,800 Wages Tips Adjusted gross income (AGI) Less: Itemized deductions Less: Standard deduction Taxable income Cheryl 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. 1. Calculate Cheryl Stern's taxable income, being sure to consider her exemption. Assme ht the standard deduction for a single taxpayer is $5,800 and that each exemption claimed is worth $3,700 $123po 2. Cheryl has been dating John Brooks for nearly four years, and they are seriously thinking about getting married. John has income and itemized deductions that are identical to Cheryl's. How much ta> would they pay as a married couple (using the filing status of married filing jointly and a standard deduction of $11,600) 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.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started