Chrissy, Jack, and Janet are friends. Jack and Janet have grown fond of each other and are thinking of marrying. Chrissy has told them, however, that if they do, their income taxes will increase. Jack and Janet don’t see how that’s possible. Assume each made $47,000 and took the standard deduction in 2007. Using the tax schedules in Figure to approximate their taxes, determine whether Chrissy is right.
Answer to relevant QuestionsJohn and his wife Clara had $36,000 of adjusted gross income in 2007. They filed a joint return and took the standard deduction. Is it likely they had to pay any taxes? If so, how much? How can an IRA affect your tax liability? List and briefly explain three fundamental deposits and five other popular types of deposits, ranking them according to availability, safety, and liquidity. What institutions are “banks”? What makes an institution a bank, according to the text? Suppose you review your monthly statement of credit card activities and discover that you have been charged for an item you didn’t buy. What should you do?
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