Travis and Taylor Swift have changed careers after their retirement in sports and entertainment. They have...

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Travis and Taylor Swift have changed careers after their retirement in sports and entertainment. They have come to you for assistance in completing their tax return and answering their questions. Their finances have substantially changed since the football days. Below you are provided with the Swift's data. Using the tax tables below, please answer the Swift's questions and complete in Excel. INCOME/CASH INFLOWS Travis' salary at Pickens Inc, $110,000 Taylor's salary at Commerce, ISD $ 55,000 Life Insurance Proceeds from Death of Taylor's brother $250,0000 Gambling winnings of $7,000 from Travis's Las Vegas trip RETIREMENT CONTRIBUTIONS Travis's Roth IRA Contribution $4,000 Taylor's Contribution to 401(k) $15,000 OTHER FINANCIAL DATA Interest earned on savings account owned by Mr. and Mrs. Swift $500 Property taxes paid $6,000 Interest paid on mortgage $4,000 Medical expenses paid when Travis had back surgery $55,000 (insurance didn't cover this amount) Income tax withholding for the year $12,000 (both individuals) Student Loan interest paid on Taylor's student loan $4,000 The Swifts have two children: Danny Swift is 14 and Sarah Swift is (4) Charitable contributions (cash) of $2,000 made payable to Texas A&M University Commerce Please answer the following questions - you must show all work and not just write the number. 1. What is the income used to calculate the AGI? 2. What are the above the line deductions? 3. What is the Swift's AGI? 4. Should the Swift's take the standard deduction or file a Schedule A? Please list the dollar amount that is eligible for the option that you select. 5. What is the taxable income for the Swift's? 6. What is the Swift's marginal tax rate and their average tax rate. 7. Will the Swift's have a refund or owe additional money? Travis and Taylor Swift have changed careers after their retirement in sports and entertainment. They have come to you for assistance in completing their tax return and answering their questions. Their finances have substantially changed since the football days. Below you are provided with the Swift's data. Using the tax tables below, please answer the Swift's questions and complete in Excel. INCOME/CASH INFLOWS Travis' salary at Pickens Inc, $110,000 Taylor's salary at Commerce, ISD $ 55,000 Life Insurance Proceeds from Death of Taylor's brother $250,0000 Gambling winnings of $7,000 from Travis's Las Vegas trip RETIREMENT CONTRIBUTIONS Travis's Roth IRA Contribution $4,000 Taylor's Contribution to 401(k) $15,000 OTHER FINANCIAL DATA Interest earned on savings account owned by Mr. and Mrs. Swift $500 Property taxes paid $6,000 Interest paid on mortgage $4,000 Medical expenses paid when Travis had back surgery $55,000 (insurance didn't cover this amount) Income tax withholding for the year $12,000 (both individuals) Student Loan interest paid on Taylor's student loan $4,000 The Swifts have two children: Danny Swift is 14 and Sarah Swift is (4) Charitable contributions (cash) of $2,000 made payable to Texas A&M University Commerce Please answer the following questions - you must show all work and not just write the number. 1. What is the income used to calculate the AGI? 2. What are the above the line deductions? 3. What is the Swift's AGI? 4. Should the Swift's take the standard deduction or file a Schedule A? Please list the dollar amount that is eligible for the option that you select. 5. What is the taxable income for the Swift's? 6. What is the Swift's marginal tax rate and their average tax rate. 7. Will the Swift's have a refund or owe additional money?