Question
The millers, a family of three filing joint returns, have the following information to prepare their federal income tax. Use the current federal tax forms
The millers, a family of three filing joint returns, have the following information to prepare their federal income tax. Use the current federal tax forms (available at the local IRS office) to make your computation.
Salaries- 65,000
Interest income, corporate bonds- 1,000
Interest income, municipal bonds (issued in 1984)- 1,500
State and local income taxes- 800
Real estate taxes- 750
General sales taxes-750
Home mortgage interest-3,350
Credit Card interest- 500
Cash contributions to charities-250
Interest on education loans- 500
Hospital and doctor expenses- 1,500
Compute the following:
A. Adjsted Gross income
B. Taxable income
C. Tax
D. Average tax rate
E. Average effective-tax rate
F. Marginal tax rate
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