Using the married filing jointly status and their income and expense statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First, use the standard deduction and then use the following itemized deductions.

Income

Income 53,000

Interest income 2,100

Expenses

Home mortgage interest 7,900

Real estate and state income taxes 5,850

Miscellaneous deductions 800

Briefly explain to the Williams which method they should use and why?

TABLE 4.1 Tax Rates and Brackets Single Filers Tax Bracket 10% 15% 25% 28% 33% 35% 395% The Tax Is: 10% of taxable income $907.50+ 15% of excess over $9,075 $5,081.25 + 25% of excess over $36,900 $ 18,193 + 28% of excess over $89,350 $45,353.75 + 33% ofexcess over $186,350 $ 1 17,54 1.25 + 35% of excess over $405,100 $ 1 18,188.75 + 39.6% of excess over $406,750 If Taxable Income Is: Not over $9,075 $9,075-$36,900 $36,900-$89,350 $89,350-$186,350 $186,350-$405,100 $405,100-$406,750 Over $406,750 Married Filing Joint Returns and Surviving Spouses If Taxable Income Is: Not over $18,150 $18,150-$73,800 $73,800-$148,850 $148,850-$226,850 $226,850-$405,100 $405,100-$457,600 Over $457,600 Tax Bracket 10% 15% 25% 28% 33% 35% 39.6% The Tax Is: 10% of taxable income $1 ,815 + 1 5% of excess over $ 18, 1 50 $10,162 + 25% of excess over $73,800 $28,925 + 28% of excess over $ 148,850 $50,765 + 33% of excess over $226,850 $1 09,587.50 + 35% of excess over $4051 00 $ 1 27,962.50 + 39.6% of excess over $457,600