Using the married filing jointly status and their income and expense statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First, use the standard deduction, and then use the following itemized deductions:
Income
Earned income ……………………………. $53,000
Interest income ……………………………. 2,100
Expenses
Home mortgage interest ………………….. 7,900
Real estate and state income taxes ……….. 5,850
Miscellaneous deductions ……………….. 800
Briefly explain to the Williams which method they should use and why.