1. The Millers, a family of four (with two young child) filing a joint tax return, have the following information to prepare their federal income tax return for tax year 2020:

Total Income $103,000

State and local income taxes $6,000

Property tax $6,000

Home mortgage interest $15,000

Contribution to charities $5,000

Interest on student loans $2,000

Contribution to their 401(k) retirement account: $11,000

For tax year 2020:

Standard deduction for a married couple: $24,000;

Child tax credit: $2,000 per child;

The income brackets, which apply to the Millers, are: for taxable income from

$0 to $20,000 the tax rate is 10%;

$20,000 to $40,000 the tax rate is 20%;

$40,000 to $80,000 the tax rate is 30%;

$80,000 to $150,000 the tax rate is 40%.

Please compute the following for tax year 2020 for the Miller family: A) Adjusted gross income; B) Taxable income; C) Tax owed to the federal government; D) Marginal tax rate; (Please write out your calculation as much as you can so I can give you partial credit even if the final answer is wrong.)

Answer rating: 100% (QA)

Sol Total Income 103000 G000 add Home Nostgage Enterest 109000 15000 lesso Contr... View the full answer