Consider the following information for a household Category Salaries $ 65,000 Interest income, corporate $ 1,000...
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Consider the following information for a household Category Salaries $ 65,000 Interest income, corporate $ 1,000 bonds E Interest income, municipal $500 bonds State and local income taxes $800 Mortgage interest payment $3,350 Charity $ 100 Interest on education loans Value $500 personal exemptions are suspended until 2025. What I want you to do in this exercise is to compare the situation pre- and post- the new tax legislation. Do not worry about inflation for this exercise. In 2017, the standard deduction was $12,700. The personal exemption was $4,050 per person. In 2018, the standard deduction was $24,000. Personal exemptions were $0. ● For both years, find the respective tax brackets for joint filings and compute the following: Adjusted gross income Taxable income Average tax rate Effective tax rate Marginal tax rate Consider the following information for a household Category Salaries $ 65,000 Interest income, corporate $ 1,000 bonds E Interest income, municipal $500 bonds State and local income taxes $800 Mortgage interest payment $3,350 Charity $ 100 Interest on education loans Value $500 personal exemptions are suspended until 2025. What I want you to do in this exercise is to compare the situation pre- and post- the new tax legislation. Do not worry about inflation for this exercise. In 2017, the standard deduction was $12,700. The personal exemption was $4,050 per person. In 2018, the standard deduction was $24,000. Personal exemptions were $0. ● For both years, find the respective tax brackets for joint filings and compute the following: Adjusted gross income Taxable income Average tax rate Effective tax rate Marginal tax rate
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Answer rating: 100% (QA)
To compare the tax situation pre and post the new tax legislation we need to calculate the adjusted gross income taxable income average tax rate effective tax rate and marginal tax rate for both 2017 ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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