Bill and Mary plan to marry in December 2017. Bills salary is $32,000 and he owns his
Question:
Bill and Mary plan to marry in December 2017. Bill’s salary is $32,000 and he owns his residence. His itemized deductions total $12,000. Mary’s salary is $39,000. Her itemized deductions total only $1,600 as she does not own her residence. For purposes of this problem, assume 2018 tax rates, exemptions, and standard deductions are the same as 2017.
a. What will their 2017 tax be if they marry before year-end and file a joint return?
b. What will their combined 2017 taxes be if they delay the marriage until 2018?
c. What factors contribute to the difference in taxes?
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a Adjusted gross income 32000 39000 71000 Minus Itemized deductions 12000 1600 13600 Personal exempt...View the full answer
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Related Book For 
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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