Today's date is July 1. Larry and Lolita Ande, both age 44, are reviewing their tax situation
Question:
Today's date is July 1. Larry and Lolita Ande, both age 44, are reviewing their tax
situation for the current year. They have been married for a number of years and have
one adult child. They file their own tax returns, and this is the first time they have had
questions about their tax situation. Table VI.3 summarizes their financial position for
tax purposes. Use this information to answer their tax questions.
Table VI.3
The Andes' Annual Tax Position
Tax Item
Amount
Larry's earnings
$50,000
Lolita's earnings
$43,000
Federal tax withholdings
$12,300
State income tax withholdings
$4,100
State and local sales taxes paid
$2,300
FICA withholdings
$6,273
Bank account interest*
$1,600
State tax refund from previous year
$900
Home mortgage interest paid
$5,300
Real estate taxes paid
$1,800
Charitable contributions
$4,000
Unreimbursed medical expenses
$800
Stock ownership: United Motor Company**
Current value: $4,000
1. What will be Ands's Gross Income?
2. Itemize Deduction?
3. Calculate taxable Income?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill