The Johnson’s had two children, both of them are married and now have their own families, call them Family A and Family B. They both file their U.S. income taxes as married, filing jointly. Information collected for a year for each family is shown below. Neglecting any effect of state taxes, use a spreadsheet and the latest tax rates from the IRS publication 17, Your Federal Income Tax (www.irs.gov), to determine the following for each family: (a) Percentage of TI paid in federal taxes. (b) Percentage of total income (salaries, dividends, and other) paid in federal taxes. Family A B Salaries, $1000 65 290 Dividends, $1000 8 58 Other income 0 14 Exemptions 5 3 Deductions, $1000 12 25 Exemptions are $4000 per individual (adult or child). Deductions for Family A are standard and itemized for B.
The Johnson’s had two children, both of them are
married and now have their own families, call
them Family A and Family B. They both file their
U.S. income taxes as married, filing jointly.
Information collected for a year for each family is
shown below. Neglecting any effect of state taxes,
use a spreadsheet and the latest tax rates from the
IRS publication 17, Your Federal Income Tax
(www.irs.gov), to determine the following for each
family:
(a) Percentage of TI paid in federal taxes.
(b) Percentage of total income (salaries,
dividends, and other) paid in federal taxes.
Family A B
Salaries, $1000 65 290
Dividends, $1000 8 58
Other income 0 14
Exemptions 5 3
Deductions, $1000 12 25
Exemptions are $4000 per individual (adult or
child). Deductions for Family A are standard and
itemized for B.
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